Media reports regarding 45 percent increase in foreign loans completely incorrect


ISLAMABAD, Dec 18 (Online): Media reports regarding 45% increase in foreign loans in 5-months period are completely incorrect and misleading. The key facts are as follows:

• During first five-months of current fiscal year (July-November, 2020), the government received gross external inflows of US$4.5 billion as against the annual budgeted estimate of US$ 14.37 billion.

• During this period, the government paid back US$ 2.9 billion on account of external public debt and its servicing. Thus, net inflow was US$1.6 billion. Budgeted estimate of external debt payment & its servicing for FY2020-21 is US$ 11.369 billion.

• During the tenure of current Government, total external inflow amounted to US$ 26.6 billion which were primarily used for repayment of external public debt and its servicing of US$ 23.4 billion. Thus, net inflow was US$ 3.2 billion during the tenure of present government.