KARACHI: Pakistan’s net addition to its external public debt for FY2018-19 was its lowest in three years at less than $2.3 billion, according to a press statement released by the country’s Economic Affairs Division (EAD) on Friday, which has caused some confusion among experts.
Total external inflow in the outgoing fiscal year was $10.186 billion, including grants of $330 million and loans of $9.85 billion, the EAD further said, and added that the government spent $8.94 billion on debt servicing.
This brought the total addition to the public debt to $2.29 billion, it said.
But Hammad Azhar, the federal minister for the EAD, said the net increase in Pakistan’s external public debt stock was approximately $2.5 billion against last year’s $8.6 billion. The net increase in total external debt and liabilities was $10 billion against $13 billion of the previous year.
The data updated on the EAD’s own website and titled “Disbursements against budget estimates of foreign economic assistance 2018-19,” shows that the government received $10.81 billion, which does not include inflows from Saudi Arabia, the UAE and Qatar.
The EAD’s press release added that the Asian Development Bank and the World Bank disbursed $541.17 million and $652.75 million respectively during FY2018-19, as compared to $945.69 million and $817.54 million during FY2017-18. It explained the slowdown in disbursement from political partners was due to “a period of political transition in the country.”
“With the restoration of confidence of international financial institutions and good prospects of budgetary support, the government is expecting very strong inflows from its development partners this year,” the statement said.
But economic experts told Arab News on Saturday that the press release had caused confusion about official figures.
“There is confusion about the data. Net debt stock was $96 billion by the end of June 2018. The net addition would be $10-12 billion,” Dr. Ashfaque Hassan Khan, a senior economist and member of the Economic Advisory Council, told Arab News.
The government had failed to factor in deposits from the Gulf countries and China, “even though we are paying interest on the loans extended to us,” he said.
According to the International Monetary Fund, Pakistan’s total external debt stock in FY 2018-19 was $104.16 billion which is projected to increase to $112.5 billion in the current fiscal year.
“See, they are saying two things,” Muzzamil Aslam, a senior economist, told Arab News. “They are saying that they have raised $16 billion, and our loans have increased by $10 billion. But they are also saying that our net loan has increased by $2.2 billion,” he said.
But EAD chief Hammad Azhar said the data was showing a clear trajectory of decreasing debt accumulation.
“Each measure, categorization of external debt [has been] listed separately,” Azhar said and added, “In all measures, external debt accumulation is less than preceding year.”
Though dates for the announcement are yet unconfirmed, Pakistan’s central bank will have the final word on official figures of external debt.
Amid data ambiguity, government claims lowest external public debt in three years
Amid data ambiguity, government claims lowest external public debt in three years
- Statement says external inflows during outgoing fiscal year were $10.186 billion, including grants of $330 million
- In all measures, external debt accumulation in FY19 is less than in preceding year: Hammad Azhar
Pakistan backs Bahrain, calls for de-escalation as Iran war continues
- Dar speaks with Bahrain’s foreign minister, conveys concern over recent attacks in the Gulf
- Both officials call for regional peace a day after Bahrain’s oil exporter declared force majeure
ISLAMABAD: Pakistan called for dialogue and de-escalation to resolve the ongoing Iran war, an official statement said on Tuesday, expressing concern over its continuing spillover into neighboring Arab states following Tehran’s attacks in the Gulf region.
Tensions in the Gulf have surged since coordinated strikes by the United States and Israel against Iran on Feb. 28, diminishing prospects of a diplomatic settlement to Tehran’s long-running dispute with Western countries and Israel over its nuclear program.
Iran subsequently said it was targeting American military bases in Gulf states including the United Arab Emirates, Bahrain, Qatar, Kuwait and Jordan, prompting condemnations from those governments, which said several strikes had hit civilian infrastructure.
Pakistan condemned both the initial strikes on Iran and Tehran’s retaliatory attacks across the region, urging all sides to halt hostilities.
“Deputy Prime Minister / Foreign Minister Senator Mohammad Ishaq Dar @MIshaqDar50 spoke late last night with Bahrain’s Foreign Minister H. E. Abdullatif bin Rashid Al Zayani,” Pakistan’s foreign office said in a social media post. “They exchanged views on the developments in the Middle East and the wider region, conveying grave concern over recent attacks, including in Bahrain.”
“DPM/FM reaffirmed Pakistan’s solidarity with Bahrain and its people, highlighting the need for de-escalation, dialogue, and efforts for peace and stability in the region,” it added.
The Iran war has disrupted regional energy infrastructure and oil trade.
Bahrain’s state oil company Bapco declared force majeure on its group operations on Friday following an attack on its refinery complex.
Bapco is a major exporter of fuels including diesel, jet fuel and naphtha to markets across the Middle East and Asia.
On Tuesday, Iran launched fresh attacks in Dubai, in the United Arab Emirates, and Bahrain.
Saudi Arabia also said it had destroyed two drones over its oil-rich eastern region and Kuwait’s National Guard said it had shot down six drones.
Dar told Pakistan’s Senate earlier this month that the government was actively striving to defuse tensions in the region. He has also remained in touch with top officials in both Iran and Arab countries.
