According to Economic Affairs Division (EAD), PML-N government procured $39.76 billion from bilateral, multilateral and commercial banks since June 2013 with $9.16 billion procured from foreign commercial banks at a rate of around 12 percent, informed sources revealed to Business Recorder.
SBP data reveals that domestic debt increased by 69 percent to Rs 16.074 trillion in March 2018 from Rs 9.520 trillion in June 2013. This led to higher allocations for mark up of both external and domestic debt by 42 percent raising interest payments parked under current expenditure in the budget for domestic and external debt.
Pakistan total debt - government guarantees, circular debt as well as public sector loan and commodity operations - is likely to reach 79 percent of GDP exceeding the limit of 60 percent of GDP set in Fiscal Responsibility and Debt Limitation Act 2005 , maintained former finance minister Dr Hafeez Pasha.
An official on condition of anonymity said that the debt incurred during the past five years is not sustainable because repayment of external loans will become due from next fiscal year (commencing July 2018) and the next government may be compelled to borrow/go on an International Monetary Fund programme to be able to service debt particularly that procured from foreign commercial banks.
The PML-N government steadily increased reliance on loans procured from foreign commercial banks and by the end of its five year tenure it had borrowed $9.16 billion from commercial banks.
In 2013-14, the government a procured $6.67 billion external loans, including $322.5 million commercial loans; in 2014-15 the inflow of external loans was $5.6 billion, including $150 million commercial loans in; in 2015-16 $ 7.34 billion loans were procured with $1.4 billion commercial loans from foreign banks; and in 2016-17 $ 10.55 billion loans were procured including $ 4.367 billion commercial loans.
In July-April 2017-18, the government received $9.6 billions loans from bilaterals/multilaterals, including $2.922 billion commercial loans from foreign banks.
During its five-year tenure PML-N administration issued Euro/sukuk bonds of $7 billion, $6 billion from World Bank, over $7 billion from China, $4.46 billion from Asian Development Bank (ADB), $4.339 billion from Islamic Development Bank, $666 million from Japan, $429 million from Saudi Arabia, $189 million from France and other $521 million from others.