PTI-led govt inherited elevated level of debt servicing over $10bn.

LAHORE: When the PTI government came to power, Pakistan faced daunting challenges such as a high current account deficit which was brought down drastically due to the incumbent government's sound fiscal policies.

Now indicators point towards improvement in the national economy despite the outbreak of coronavirus pandemic in the country. All high-frequency data shows improvement in the economy, and the growth rate is being predicted at about 3.94 percent.

PTI Government inherited an elevated level of debt servicing over the US $ 10 billion/year caused mainly due to enhanced external borrowing (US$ 49.76 billion), especially short-term & expensive commercial loans ($17b) by the previous governments.

During the current fiscal year, the government has to repay about US$ 10.36 billion on account of external loans, including principal & interest payments, while expected inflows are estimated at US$ 14.37 billion.

During the first 10-months of FY2020-21, the government has repaid an amount of US$ 7.52 billion, including US$ 6.31 as principal & US$ 1.21 billion as interest payments. In order to discharge its various obligations, the...