Islamabad received US$ 2.7 billion in loans between July-September 2020

Islamabad has received US$ 2.7 billion in foreign loans between July-September 2020.

According to Ministry of Economic Affairs Pakistan received US$ 2.734 billion in foreign loans in the first quarter of fiscal year (FY) 2020-21 alone.

The US$ 2.7 billion in external inflows from various sources is essentially 22 per cent of the annual budget for FY 2020-21 of around US$ 12.2 billion

Meanwhile, the US$ 2.7 billion figure shows a 25.4 per cent increase in external loans in the first quarter as compared to that of last year which stood at US$ 2.2 billion.

It is imperative to know that a mere 11.6 per cent or US$ 317 million out of the total US$ 2.7 billion is allocated for assets creation, the rest will be directed towards budget financing, balance of payments support as the country failed to establish any revenue-generating assets.

Institute of Policy Reforms (IPR) in its report, has highlighted the increasing public debt that could eventually result in various national security issues.

The public debt has increased by Rs 14.7 trillion as a result of insufficient, ineffective and weak fiscal management and failure to reform energy sector.

Prior to this, government announced its decision to secure US$ 200 million in loan from International Development Association (IDA) aimed at improving and extending digital outreach and efficiency in the country.