ISLAMABAD: Challenging the media reports of Rs11.61 million borrowings, the federal government clarified on Sunday that it had borrowed only Rs4.11 trillion in the last 15 months to finance budget deficit. The figure of increase under the Total Debt and Liabilities by Rs11.61 trillion being reported in the media needs to be properly interpreted, the release says and adds the government had borrowed only Rs 4.11 trillion to finance its budget deficit. The figure of Total Debt and Liabilities consists of five components that are Total Public Debt, Public Sector Entities’ (PSE) Debt, Debt for Commodity Operations, Foreign Exchange Liabilities of State Bank of Pakistan (SBP), and Private Sector’s External Debt. An amount of Rs3.13 trillion (27pc of the increase) is on account of cash balances and the SBP’s foreign exchange liabilities. It should not be interpreted as Debt because it is offset by cash balances of government and liquid assets of SBP, the MoF clarifies.

Source: Pakistan Today February 02, 2020 16:42 UTC