ISLAMABAD: The government has decided to take loan of $2billion from Asian Development Bank (ADB) during 2017 on Sunday.
According to documents available with “Online” the loan will be utilized for development projects including energy and infrastructure across the country.
Documents revealed that 300milliom dollars for Sustainable Energy Sector Reforms Program (SESRP), $200million for Power Transmission Investment Program(PTIP),$200million for Pakistan Infrastructure Development Fund (PIDF), 300million dollars for Public Sector Enterprisers Reforms Program(PSERP), $100million for the project to support Investment in Punjab,$200million for Carec Corridor Development Investment Program(CCDIP),$150million for the projects of roads in KPK,$150 million for Peshawar Sustainable Bus Rapid Transit Corridor Project (PSBRTCP),$210million for the project of Karachi Sustainable Rapid Transit (KSRT)and for Punjab Intermediate Cities Improvement Investment Program (PICIIP)200 million dollars have been decided to obtain from ADB.
According to documents government would also make financing in all aforesaid projects.
Officials were of the view that Pakistan has so far obtained $27.5 billion from ADB since 1967.
Documents stated the process of retiring of debts taken by the previous government is continued.
Documents added that the government will have to return $6.50 billion foreign debts from January 2017 to June 2018. The government has to return $3 billion to international department, $85 million of foreign commercial loan, $8.20 million to International Monitory Funds (IMF) in addition to this the government has to pay on bonds worth $75million.
Documents stated that more than 5255 billion of rupees in local debts and 2500billion of rupees in foreign debts have been increased.
According to official documents three years ago a total debts were 14,318 billion of rupees in which the volume of domestic loans were Rs9, 522 billion and the volume of foreign loans were 4,800.
According to law the volume of debts should not be more than 60 percent of GDP but now the loans have reached to 68percent of GDP which is violation of Fiscal Responsibility and Debt Limitation Act 2005.