Govt to pay Rs 3.05 trillion marks up on debt

Islamabad: The federal government has projected spending Rs3.059 trillion on markup payments on domestic and foreign debt in the upcoming fiscal year 2021-22.

The federal government has projected that it will spend Rs2.9 trillion on markup payments on domestic and foreign debt in the ongoing fiscal year 2020-21.

It earmarked Rs3.059 trillion on interest payments on domestic and foreign loans, of which Rs2.75 trillion would be a markup on household debt and Rs302.5 billion on foreign debt during the next financial year 2021-22.

The government had projected Rs2.94 trillion to pay a markup on foreign and domestic loans for the outgoing year, but the target was later revised downward to Rs2.85 trillion.

It paid Rs 2.61 trillion markups on domestic loans and Rs 239.5 billion on foreign debt during the ongoing financial year 2020-21.

According to budget documents, the government had estimated external receipts for the fiscal year 2020-22 at Rs2.69 trillion. The government has launched Rs259.9 billion in project loans and Rs438.19 billion in program loans.

It had anticipated an inflow of Rs2.15 trillion in external loans in the outgoing financial year, but now according to revised estimates, it expected receipt of Rs2.2 trillion.

The government also hopes to receive a Rs 259.9 billion project loan and Rs 438.1 billion program loan for the next financial year 2021-22.

The government had projected a project loan of Rs 218 billion. However, it hopes to receive Rs 228.8 billion during the ongoing financial year.

The government has projected Rs496 billion in IMF loans for budgetary support from 2021-22. Pakistan does not hope to receive any amount on account of the deferred oil payment facility from Saudi Arabia in the next financial year.

The government had projected to receive Rs 165 billion from Saudi Arabia on deferred payment facility during the current financial year. However, Pakistan did not receive any amount on this head from Saudi Arabia.

From the Islamic Development Bank, the government had estimated receipt of Rs160 billion in the outgoing year. It received Rs128 billion in the ongoing financial year.

In the next financial year, the government is likely to raise Rs560 billion through Sukuk (Islamic bond)/Eurobond issuance.

The government also expects to generate Rs779.2 billion from commercial banks in the next financial year.