LAHORE: A group of Sikh devotees, who started their journey from New Delhi, crossed the Wagah border on Thursday to participate in the celebrations of Guru Nanak’s 550th birth anniversary in November.
“About 1,200 Sikhs have reached Pakistan as part of the Nagar Kirtan [a religious procession]. They are carrying a golden palki [palanquin] that will be taken to Gurdwara Nankana Sahib where it will be installed,” Sardar Satwant Singh, president of the Sikh Gurdwara Parbandhak Committee Pakistan (SGPCP), told Arab News.
Nagar Kirtan is a religious custom involving the processional singing of holy hymns. It is led by five saffron-robed faithfuls who are followed by Guru Granth Sahib, the holiest book in the Sikh faith.
The Kirtan was received by the governor of Pakistan’s Punjab province, Chaudhary Muhammad Sarwar, and a delegation of local Sikh community at the border.
Governor Sarwar said while welcoming the devotees that his country was committed to opening the Kartarpur Corridor on November 9 “despite the negatives tactics of India.” He added that Pakistan was going to provide every possible facility to members of religious minorities.
“Prime Minister Imran Khan will inaugurate the corridor on November 9 despite the negative tactics of India. 100,000 Sikh from India and other parts of the world will participate in the 550th birthday celebrations of Guru Nanak,” he said.
Leader of the Nagar Kirtan Paramjit Singh thanked the Pakistani authorities for facilitating the Sikh community and making it possible for them to perform their religious rituals.
“We praise the steps taken by Prime Minister Imran Khan that have ensured that members of the Sikh community can visit one of the holiest shrines in their faith. The Kartarpur Corridor is a lasting gift to the Sikhs of India,” Sardar Paramjit Singh told Arab News.
Indian Sikhs begin to arrive in Pakistan ahead of Guru Nanak’s birth anniversary
Indian Sikhs begin to arrive in Pakistan ahead of Guru Nanak’s birth anniversary
- About 1,200 Sikhs arrived in Lahore on Thursday and were welcomed by the Punjab governor at the Wagah border
- Leader of the incoming delegation praised PM Khan for providing easy access to one of the holiest shrines in Sikhism
Islamabad dismisses claims about paying up to 8 percent interest on foreign loans as ‘misleading’
- Pakistan has long relied on external loans to help bridge persistent gaps in public finances and foreign exchange reserves
- Pakistan’s total external debt, liabilities stand at $138 billion at an overall average cost of around 4 percent, ministry says
KARACHI: Pakistan’s finance ministry on Sunday dismissed as “misleading” claims that the country is paying up to 8 percent interest on external loans, saying the overall average cost of external public debt is approximately 4 percent.
Pakistan has long relied on external loans to help bridge persistent gaps in public finances and foreign exchange reserves, driven largely by a narrow tax base, chronic trade deficits, rising debt-servicing costs and repeated balance-of-payments pressures.
Over the decades, successive governments have turned to multilateral and bilateral lenders, including the International Monetary Fund, the World Bank and the Asian Development Bank, to support budgetary needs and shore up foreign exchange reserves.
The finance ministry on Sunday issued a clarification in response to a “recent press commentary” regarding the country’s external debt position and associated interest payments, and said the figures required contextual explanation to ensure accurate understanding of Pakistan’s external debt profile.
“Pakistan’s total external debt and liabilities currently stand at $138 billion. This figure, however, encompasses a broad range of obligations, including public and publicly guaranteed debt, debt of Public Sector Enterprises (both guaranteed and non-guaranteed), bank borrowings, private-sector external debt, and intercompany liabilities to direct investors. It is therefore important to distinguish this aggregate figure from External Public (Government) Debt, which amounts to approximately $92 billion,” it said.
“Of the total External Public Debt, nearly 75 percent comprises concessional and long-term financing obtained from multilateral institutions (excluding the IMF) and bilateral development partners. Only about 7 percent of this debt consists of commercial loans, while another 7 percent relates to long-term Eurobonds. In light of this composition, the claim that Pakistan is paying interest on external loans ‘up to 8 percent’ is misleading.
The overall average cost of External Public Debt is approximately 4 percent, reflecting the predominantly concessional nature of the borrowing portfolio.”
With respect to interest payments, public external debt interest outflows increased from $1.99 billion in Fiscal Year (FY) 2022 to $3.59 billion in FY2025, representing an increase of 80.4 percent, not 84 percent as reported. In absolute terms, interest payments rose by $1.60 billion over this period, not $1.67 billion, it said.
According to the State Bank of Pakistan’s records, Pakistan’s total debt servicing payments to specific creditors during the period under reference were as follows: the IMF received $1.50 billion, of which $580 million constituted interest; Naya Pakistan Certificates payments totaled $1.56 billion, including $94 million in interest; the Asian Development Bank received $1.54 billion, including $615 million in interest; the World Bank received $1.25 billion, including $419 million in interest; and external commercial loans amounted to nearly $3 billion, of which $327 million represented interest payments.
“While interest payments have increased in absolute terms, this rise cannot be attributed solely to an expansion in the debt stock,” the ministry said. “Although the overall debt stock has increased slightly since FY2022, the additional inflows have primarily originated from concessional multilateral sources and the IMF’s Extended Fund Facility (EFF) under the ongoing IMF-supported program.”
Pakistan secured a $7 billion IMF bailout in Sept. 2024 as part of Prime Minister Shehbaz Sharif’s efforts to stabilize the South Asian economy that narrowly averted a default in 2023. The government has since been making efforts to boost trade and bring in foreign investment to consolidate recovery.
“It is also important to note that the increase in interest payments reflects prevailing global interest rate dynamics. In response to the inflation surge of 2021–22, the US Federal Reserve raised the federal funds rate from 0.75-1.00 percent in May 2022 to 5.25–5.50 percent by July 2023. Although rates have since moderated to around 3.75 percent, they remain significantly higher than 2022 levels,” the finance ministry said.
“The government remains committed to prudent debt management, transparency, and the continued strengthening of Pakistan’s macroeconomic stability,” it added.
