The ایک 1 billion loan was repaid in 2016 through sukuk bonds. Photo: Social Media
Islam Abad: Pakistan repays ارب 1 billion in foreign debt
According to Finance Ministry sources, the government repaid a foreign debt of ارب 1 billion yesterday. The loan was obtained in October 2016 through the issuance of sukuk bonds at an interest rate of 5.5%. Debt repayment has dealt a temporary blow to foreign exchange reserves, which are currently at سطح 19 billion.
On the other hand, the business community has demanded an inquiry into the decision to increase the interest rate two years ago, which allegedly caused a loss of Rs 25 trillion to the national exchequer.
According to sources, the government is planning to borrow another ارب 1 billion through the issuance of International Sukuk. The Ministry of Finance has made significant progress in this regard. The PTI government has already raised 3 3.5 billion through the issuance of bonds in recent months.
Meanwhile, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has written a letter to Federal Finance Minister Shaukat Tareen advising the Finance Minister to refrain from further increasing the tax burden on the people. It has been demanded to increase it to 13.25%.
According to the business community, the rise in interest rates has derailed the country’s economy and for the first time in its 70-year history, the growth rate has turned negative. The increase in interest rates caused a total loss of Rs 25 trillion to the national exchequer.
The letter, sent by FPCCI President Nasir Hayat Magun and Chairman Policy Advisory Board Younis Dhaga, also IGed concern over the IMF’s demand for additional tax of Rs 5 billion in the current financial year. ۔