Start Faisalabad dating point

Faisalabad dating point

As opposed to claim, short term domestic loans entails lower interest rates, hence contributed less to debt servicing cost.

Moreover, debt servicing was recorded at Rs.647 billion during first half of last fiscal year, therefore, provisional debt servicing number of Rs.625 is not unusual keeping in view the expected growth in revenue and GDP during 2017-18 and is lower than the last year.

It is also clarified with regard to reliance on short - term domestic and foreign borrowings has significantly increased the debt servicing cost.

In response to contentions made in a news report ''Pakistan Budget Deficit increases to Rs 826 billion”, carried by a section of media, the Ministry of Finance clarifies that fiscal deficit data is not compiled on monthly basis nor it reports on its website.

The data is compiled on quarterly basis after receipt of required data from EAD, SBP and Provincial Governments with a time lag of almost two month.

Remittances have now returned to growth zone after remaining negative last year.

FDI registered a phenomenal growth of 57% in first five months of this year.

These arrangements include government official inflows from multilateral and bilateral sources, Sukuk / Euro bonds, privatisation proceeds, foreign direct investment, private capital inflows and commercial financing, if necessary.

After accounting for these arrangements, the net financing gap that the country faces this year is estimated to be in the range of US$ 2 to US$ 2.5 billion.

With regards to rising debt servicing which is the key reason for the increasing budget deficit.

It is pertinent to mention that the article acknowledges the fact that the annual budget estimates for fiscal year 2017-18 are Rs.1,363 billion while debt servicing during July - November provisionally stood at Rs.625 billion.

Even in the developing country peer group, Egypt, Srilanka and India carry higher debt to GDP levels than Pakistan.