Saturday, June 15, 2024

Government Pressurized To Borrow for Paying the Interest over Past Loans

The Finance Ministry has said that the only reason for pressurizing and forcing the government for borrowing was the only requirement to pay back the amount of Rs.1 trillion in interest that was on past loans taken by the country just during the small period of few months that is from July to the month of October.

In his statement, the minister also said that the amount of Rs 4.7 trillion was on the top already that had been paid by the government prior as to June just by bringing up this total amount of interest paid on the past loans to staggering the amount of Rs 5.7 trillion.

The minister’s statement clarifies that the government has inherited a precarious debt condition like the situation that is managed with the discipline, increase in the tax and the non-tax revenues, and the aggressive control of other expenses.

The statement also added that the efforts by the government yielded the primary surplus, whereas only the payment of the interest on the past loans had forced and pressured the government to borrow it at all. In the fiscal year of 2020, the statement also added that the government had also succeeded in keeping their stocks of public debt firmly as in check with the virtually no increase in it.

Mehjabeen Qasim
Mehjabeen Qasim
Business Journalist at Startup Pakistan

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