Finance Ministry contradicts a news report claiming increase in government borrowing.

ISLAMABAD -- Ministry of Finance on Saturday contradicted a news report published in section of local press claiming that the government's foreign borrowing increased by US$ 5.5 billion during the period from July-December 2019.

A press released issued by the Ministry of Finance termed the news report misleading and factually incorrect.

'The contentions of the report are not only misleading, but also against the national interest as the report sends erroneous signals to the markets, which can have potentially negative consequences for Pakistan's rapidly stabilizing economy,' it added.

The ministry contended that reporting gross external debt inflows only presents one side of the picture, ignoring outflows on account of repayments, which are the other side of the picture, and a prerequisite to calculate the net or actual increase in external indebtedness of the country.

'Whereas, the reported gross disbursement was US$ 5.5 billion during July- December 2019, deducting the US$ 3.8 billion which the government paid back during the said period leaves a net figure of US$ 1.7 billion. Therefore, the real addition was US$ 1.7 billion, not US$ 5.5 billion as claimed by a section of the...