The National Standing Committee on Economic Affairs was informed on Tuesday (28 September) that Pakistan’s external debt and liabilities have surpassed the historic high of $122 billion recorded at the end of the previous fiscal year (FY21).
Mir Khan Muhammad Jamali served as the panel’s chairman.
Additional Secretary for Economic Affairs Zulfiqar Haider briefed the panel on the country’s foreign debt and the effects of currency depreciation, saying that the country’s external debt and liabilities (EDL) stood at $96 billion as of June 30, 2018, and jumped to $26 billion during the incumbent government’s three years in office.
He stated that Pakistan was bound by a deadline to repay the Paris Club $3.785 billion. However, considering the ongoing pandemic’s economic impact, the Paris Club recently reduced the deadline and stated that it will be extended.
MNA Qaiser Ahmed Sheikh pointed that at the time of extension, the rate of dollar was Rs50 cheaper which means that the country would have to suffer due to change in exchange rates.
More than $22.37 billion was borrowed from international financial institutions for 124 projects, according to the committee. During the Covid-19 crisis, the Economic Affairs Division allegedly secured a $4.1 billion loan and spent $653 million for vaccines.
The secretary, on the other hand, said that the loan numbers were “sensitive” and thus required an in-camera session for a thorough explanation.
