The external debt of province stood at Rs 294 billion by end of June 2021
FAQIR HUSSAIN
PESHAWAR
The Khyber Pakhtunkhwa (KP) government has planned to take nearly Rs 371 billion loans from international financial institutions for new and ongoing developmental projects in various sectors.
According to official documents, the provincial government will borrow loans from Asian Development Bank (ADB), and other financial institutions for KP Economic Corridor (KPEC), Energy Development Project, Balakot Hydro Project, KP Health System and Rural Economic Transformation Project in the province.
With the new loan, the total outlay of the KP foreign debt would jump to Rs 665 billion.
Sources in the finance department told this scribe that by June 2021, the external debt of the province stood at Rs 294 billion.
The provincial government so far has taken loans from ADB, World Bank (WB) and other foreign aid agencies to meet the financial requirements of Malakand Rural Development Project, BRT Project, Balakot Hydropower Project and Pehur High Level Canal and 100 other projects in the province.
“Outstanding foreign debt against the Provincial Government as on 1st July, 2013 is Rs.123 billion,” official documents revealed.
Pakistan Tehreek-e-Insaf (PTI) in its first and ongoing term in KP has obtained Rs 172 billion foreign loans from foreign banks.
The government has also set up a debt management unit in the finance department in 2018 to manage the overall affairs related to foreign loans.
Abdul Qayyum, head of the debt management unit, said the provincial government has launched a number of developmental projects and almost all of the foreign loans to be utilized over the completion of these projects.
Mr Qayyum said that the provincial government has gained trust of the foreign aid agencies and donors due to its efficient performance in developmental sectors.
