AGL 5.50 Decreased By ▼ -0.10 (-1.79%)
ANL 8.70 Decreased By ▼ -0.20 (-2.25%)
AVN 75.85 Decreased By ▼ -1.13 (-1.47%)
BOP 5.19 Decreased By ▼ -0.06 (-1.14%)
CNERGY 4.53 Decreased By ▼ -0.12 (-2.58%)
EFERT 81.25 Increased By ▲ 0.03 (0.04%)
EPCL 50.00 Decreased By ▼ -0.03 (-0.06%)
FCCL 12.52 Decreased By ▼ -0.64 (-4.86%)
FFL 5.57 Decreased By ▼ -0.13 (-2.28%)
FLYNG 6.95 Decreased By ▼ -0.15 (-2.11%)
FNEL 4.65 Decreased By ▼ -0.11 (-2.31%)
GGGL 8.58 Decreased By ▼ -0.22 (-2.5%)
GGL 14.26 Decreased By ▼ -0.34 (-2.33%)
HUMNL 5.58 Decreased By ▼ -0.09 (-1.59%)
KEL 2.54 Decreased By ▼ -0.09 (-3.42%)
LOTCHEM 27.99 Decreased By ▼ -0.66 (-2.3%)
MLCF 23.74 Decreased By ▼ -0.95 (-3.85%)
OGDC 71.63 Decreased By ▼ -0.88 (-1.21%)
PAEL 15.09 Decreased By ▼ -0.28 (-1.82%)
PIBTL 4.89 Decreased By ▼ -0.09 (-1.81%)
PRL 15.78 Decreased By ▼ -0.42 (-2.59%)
SILK 1.07 No Change ▼ 0.00 (0%)
TELE 8.94 Decreased By ▼ -0.26 (-2.83%)
TPL 7.04 Decreased By ▼ -0.21 (-2.9%)
TPLP 18.34 Decreased By ▼ -0.36 (-1.93%)
TREET 21.00 Decreased By ▼ -0.70 (-3.23%)
TRG 134.50 Decreased By ▼ -2.05 (-1.5%)
UNITY 16.79 Decreased By ▼ -0.23 (-1.35%)
WAVES 9.27 Decreased By ▼ -0.62 (-6.27%)
WTL 1.37 Decreased By ▼ -0.04 (-2.84%)
BR100 4,154 Decreased By -71.4 (-1.69%)
BR30 15,291 Decreased By -227.1 (-1.46%)
KSE100 41,607 Decreased By -543.3 (-1.29%)
KSE30 15,371 Decreased By -217.8 (-1.4%)
Follow us

LAHORE: The Punjab government’s liabilities, local and external, bulged by Rs113 billion in the last quarter of the fiscal year 2021-22, mainly due to the depreciation of the Pak rupee.

As per a report released by the Punjab Finance Ministry for the period between April 1 and June 30, the domestic loans showed a slight decline from Rs 3.975 billion to Rs 3.569 billion, a reduction of 0.3 percent, whereas the external loans swelled by 10.4 percent, from Rs 1.093473 trillion to Rs 1.206,664 trillion.

In the report, it was noted that 99.7 percent of the total outstanding debt stock is denominated in foreign currency and thus the Punjab government’s debt is highly exposed to the fluctuation in foreign exchange. Hence, the government had to bear Rs 111.6 billion extra liability (after using the forex rates of June 30) on the account of the rupee’s depreciation. The report pointed out that the above-given debt stock is exclusive of wheat debt amounting to Rs 629 billion (as of June 30) against the coverage of wheat stock amounting to Rs 265 billion.

A major share of government borrowing comes from the International Development Association (IDA) that is 33 percent (Rs 400,959 million) of the total outstanding followed by China 24 percent (Rs 285,257 million), Asian Development Bank (ADB) 23 percent (Rs 282,653 million), International Bank for Reconstruction and Development (IBRD) 16 percent (Rs 186,122 million), Japan International Cooperation Agency (JICA) 2 percent (Rs 25,505 million), International Fund for Agriculture Development (IFAD) 2 percent (Rs 18,586 million), France 0.3 percent (Rs 3,937million), federal government 0.3 percent (Rs 3,569 million), and Islamic Development Bank (IDB) 0.01 percent (Rs 78 million).

The report notes that of the total local and external debt, the share of borrowing from the World Bank (IBRD and IDA) constitutes 49 percent and China 24 percent.

As per the report, the agriculture and livestock sector remained the major recipient of government borrowing, which amounts to Rs 317,123 million (26 percent of the total outstanding) followed by transport and communication Rs 294,116 million (24 percent), education Rs 265,235 million (22 percent), urban and community development Rs 147,556 million (12 percent), governance Rs 80,269 million (7 percent), health Rs 54,252 million (4 percent), energy Rs 22,010 million (2 percent), industries and infrastructure Rs 19,997 million (2 percent), tourism Rs 4,061 million (0.3 percent) and environment Rs 2,044 million (0.2 percent).

The report revealed that during the fiscal year 2021-22, the Punjab government repaid Rs 68,393 million of the total loans, of which Rs 52,638 million was the principal amount and Rs 15,755 million was interest repayment. Moreover, projected debt servicing for the current fiscal year (2022-23) has been set at Rs 92,502 million, of which Rs 69,845 million constitutes principal repayment and Rs 22,664 million for interest repayment. The projected debt servicing was calculated on the exchange rate of June 30.

Copyright Business Recorder, 2022

Comments

Comments are closed.

Punjab govt liabilities surge by Rs113bn due to rupee depreciation

Big tax defaulters: FBR to auction off properties, trademarks

Intra-day update: rupee registers improvement against US dollar

JPL seeks exemption from IFRS-9

Govt urges Turkiye to expedite TGA

UAE, Ukraine to start talks on bilateral trade deal

Oil prices rise after OPEC+ keeps output cut targets, China eases COVID curbs

Cotton arrival falls 40% year-on-year

Engro Corp to pursue potential investment opportunity in tower infrastructure sector

Pakistani embassy in Kabul: IS-KP claims responsibility for attack

Sindh will rise again against ‘the tyrant’: IK