ISLAMABAD: Adviser to the Prime Minister on Finance Shaukat Tarin on Friday informed the National Assembly that total public debt increased by Rs14.9 trillion during July 2018-June 2021.
While giving detail of the debt, in a written reply to a question, he said that financing of federal primary deficit was Rs3.5 trillion, interest on debt was Rs7.5 trillion, exchange rate devaluation effect was Rs2.9 trillion, and cash buffer/other reasons was Rs1.0 trillion.
About an inquiry commission formed to investigate the debt taken by the country by the ruling Pakistan Tehrik-e-Insaf (PTI) government, he said the Cabinet Division had constituted an inquiry commission on debt in June 2019, but it was yet to submit its report. He said the inquiry commission on debt was constituted to conduct inquiry into the period from February 2008 to September 2018.
About financing of primary deficit, he said the impact of economic slowdown due to the Covid-19 pandemic mainly resulted in higher than estimated primary deficits.
He said that Rs3.4 trillion (23 percent of the increase) was borrowed for financing of primary deficit.
Budgetary outlay in Q1 of FY22
About interest expenses, he said the government paid Rs7.5 trillion against interest servicing, which explained 50 percent of the increase in total public debt.
About currency devaluation impact, Tarin said that exchange rate depreciation added around Rs2.9 trillion (20 percent of the increase) in public debt.
He said it was important to highlight that the increase was not due to borrowing but due to re-valuation of external debt in terms of rupees after currency devaluation.
About cash management and others, he said Rs1.0 trillion (seven percent of the increase) was on account of increased cash balances of the government to meet emergency requirements.
However, he insisted the increase in debt was offset by corresponding increase in the government’s liquid cash balances. Responding to another question, he said that a total of $1.1 billion value of export made in sectors, sugar, wheat, cigarette, and cement, during the last three financial years, 2018 to 2021.
He said that a total of $558.18 million export of these sectors was made in 2018-19, $272 million in 2019-20, and $199 million in 2020-21.
He said a total $186 million export of cement was made in 2018-19, $211 million export of sugar, and $161 million of wheat. He said that a total export of $154 million of cement, $105 million of sugar, $6 million of wheat, and $7 million of cigarette was made in 2019-20.
He said that a total of $184 million export of cement and $15 million of cigarette was made in 2020-21.
In a written reply to a question, Minister for Economic Affairs Omar Ayub Khan said that total amount committed by foreign countries and organisations for the Covid-19 response was $4.25 billion, of which US$ 3.633 billion has been disbursed as of 10th November 2021.
Earlier, the National Assembly passed a motion allowing use of the National Assembly hall for a meeting of foreign ministers, representing all members of the Organization of Islamic Cooperation (OIC) to be held in Islamabad.
The motion was moved by the PTI’s Aamir Dogar.
Later, the session which was being chaired by deputy speaker Qasim Suri was prorogued after the opposition members pointed out the quorum, when they were not given the floor to speak at point of orders.
Copyright Business Recorder, 2021
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