Govt to break record of repaying loans: Minister.

ISLAMABAD -- Federal Minister for Economic Affairs Hammad Azhar on Tuesday said country's economic situation has improved due to the prudent policies of the incumbent government, as it brought under control the soaring current account and budget deficits.

Addressing a press conference, he said the government would break the record of repaying against previous loans. He further said that government had spent $10 billion on repaying against previous loans and interest payment in previous fiscal year. Sharing details, the minister informed that volume of power sector circular debt had increased to Rs1200 billion when the incumbent government took charge. However, the government had brought down the growing circular debt from Rs38 billion to Rs12 billion per month. The circular debt would be brought to zero in December 2020.

Azhar admitted that inflation increased in the country. However, inflation enhanced at slower pace in first 13 months of the incumbent government as compared to the same period of previous two governments. Inflation had gone up by 8 percent in first 13 months of the incumbent government, which had increased by 8.3 percent in PML-N and 21 percent in PPP's tenure. He was of the view that inflation would start declining after few months due to reduction in current account deficit. The current account deficit had reduced by 65 percent in the first quarter (July to September) of the current fiscal year, he added.

The minister said that current account and fiscal deficits have decreased, while foreign direct investment and tax base of the country have increased.

Sharing details of the economic figures, he informed that current account deficit had declined by 65 percent...