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
US, Pakistan agree to strengthen security and border cooperation
- Pakistan, US have maintained multifaceted ties, encompassing security cooperation, economic engagement and people-to-people ties
- In August last year, both countries reaffirmed their commitment to combating militancy by boosting capabilities against emerging threats
KARACHI: The United States (US) and Pakistan have agreed to strengthen cooperation on security and border management, the Pakistani interior ministry said on Saturday, with both sides reaffirming commitment to counter terrorism, enhance information-sharing and promote regional stability.
The statement came after a meeting of Pakistani Interior Minister Mohsin Naqvi with a high-level US delegation, led by US Chargé d’Affaires Natalie Baker, that featured in-depth discussions on boosting Pakistan-US relations and expanding cooperation in shared areas of interest.
The two sides discussed training programs for officials of Pakistan’s Federal Investigation Agency (FIA), Federal Constabulary and NCCIA National Cyber Crime Investigation Agency (NCCIA) as well as the establishment of a Center for Transformation Crime and an academy within FIA with US support.
“Both sides agreed to enhance collaboration in bilateral security and border management,” the interior ministry said. “It was mutually agreed to further strengthen existing cooperation with the [US] Anti-terrorist Assistance Program and the Bureau of International Narcotics and Law Enforcement Affairs.”
Both sides agreed to equip Pakistani border security agencies, coast guards and other institutions with modern US-supplied equipment.
On the occasion, Naqvi said that modern technology would enhance the capacity of Pakistani border security agencies and coast guards, according to the ministry. He welcomed US assistance in the reorganization of the Federal Constabulary and in strengthening the capabilities of FIA and NCCIA.
Pakistan and the US have maintained multifaceted relations for decades, encompassing security cooperation, economic engagement and people-to-people ties. While the partnership has experienced periods of strain, particularly over regional security dynamics in South Asia and Afghanistan, both sides have continued to engage through institutional mechanisms, including military-to-military contacts, counterterrorism cooperation and high-level diplomatic dialogues.
In August last year, both sides reaffirmed their commitment to combating militancy by boosting capabilities against emerging threats, the Pakistani foreign office said, following a Pakistan-US joint counterterrorism dialogue in Islamabad. This month, Pakistan and the US launched the 13th edition of their bilateral joint counterterrorism exercise, Inspired Gambit 2026, to boost interoperability and share counterterrorism expertise, the Pakistani military said.
Naqvi said the US support in activating FIA’s Counter-Terrorism Wing would prove to be “highly beneficial,” while the NCCIA is carrying out an extensive crackdown on illegal call centers across the country.
“Advanced software is vital for preventing financial fraud and terror financing, and US cooperation with NCCIA in this regard is highly significant,” he said.
The minister emphasized the need to further expand collaboration with Pakistani institutions, according to the Pakistani interior ministry. The US delegation appreciated Pakistan’s efforts to increase security cooperation and strengthen bilateral ties.
“The acting US ambassador acknowledged the ongoing collaboration between the Ministry of Interior and US agencies at various levels and reaffirmed that efforts would continue to further enhance partnership with Pakistan,” the ministry added.
