Govt paid of $10bn debt in its first year in power, says Hammad Azhar

• The minister said that as per IMF the government excelled in this area.
• He said the govt has set the target of reducing fiscal deficit to four percent in the next one or two years.

Minister for Economic Affairs Hammad Azhar has said the fiscal deficit has remained within the target for the first quarter of the ongoing financial year.

Speaking to the senate, the minister said that as per International Monetary Fund (IMF), the government excelled in this area. He said that the government has set the target of reducing fiscal deficit to four percent in the next one or two years.

The minister informed that the government paid off over $10 billion of debt in its first year in power, the highest debt payoff made by any government.

The minister informed that the foreign exchange reserves are also on upward trajectory. The FX reserves hold by SBP increased by $1.6 billion from $7.3 billion in June 2019 to $8.9 billion as of November 26 2019, which at present were $7.9 billion after the government paid $ one billion for Sukuk bonds.

Hammad said the government has forecast to gradually reduce the debt to GDP ratio, and looks to enhance its revenues and foreign exchange reserves besides cutting expenditures for this purpose.

Talking about the revival of sick units, the minister said that the commerce and finance ministries and the SBP are in consultation. Hammad said different proposals including restructuring of their loans are being considered to revive them and enhance the exports.