PESHAWAR: The total debt liabilities of Khyber Pakhtunkhwa on account of foreign debt amounting to Rs. 193.7 billion obtained by the province for financing of specified development projects.
According to White Paper 2019-20, the foreign exchange loans are used for the financing of specified developmental projects under an agreement between respective governments.
The re-lending terms and conditions of the loans to the Provincial government are the same as agreed by Federal Government with the loan providing agencies. Most of the loans have embedded fixed interest rates; only 5 loans are on LIBOR terms (variable interest rate).
Foreign Debt, in terms of currency composition, is heavily denominated by the US Dollars which accounts for more than two-third of foreign debt stock.
Presently, there is no outstanding debt liabilities against the provincial government on account of federal loan as on 01 July 2019.
Rs0.2 billion has been allocated for loans and advances in shape of house building allowance, motorcar allowance and motorbike allowance for employees of provincial government in FY 2019-20. The outstanding loans are waived off in case of the death of employee during services.
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