Pakistan : Terrorist Wahabi Islamic Rep Pakistan 6

[Naresh]

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[url="http://www.dailytimes.com.pk/default.asp?page=2010/11/16/story_16-11-2010_pg1_2"]1. Govt’s domestic borrowing reaches Rs 6 trillion[/url]



ISLAMABAD: State Bank Governor Shahid Kardar on Monday informed the donor community [color="#FF0000"]that government borrowing from the banking sector has reached 56 percent or Rs 6 trillion,[/color] putting pressure on the exchange rate and resulting in an increase in inflation. Kardar told the Pakistan Development Forum that the Finance Ministry had piloted an amended SBP Act through the National Assembly, limiting government borrowing from the SBP to only 10 percent of previous fiscal revenues.



[url="http://thenews.com.pk/13-11-2010/Business/15412.htm"]2. External debt, liabilities rise to $58.41 billion[/url]



KARACHI: [color="#FF0000"]Pakistan’s external debt and liabilities (EDL) increased by $3.2 billion to $58.41 billion by the end of the first quarter of 2010/11[/color] against $55.21 billion during the corresponding period last year, the State Bank of Pakistan (SBP) said on Friday.



In the total EDL, the public debt mounted to $54.79 billion by September 30 against $51.62 billion during the same period last year.



The public debt includes government debt, from the International Monetary Fund (IMF) and foreign exchange liabilities.



The government debt is around $44.78 billion at the end of the first quarter of the current fiscal year. The loan from the IMF grew to $8.91 billion from the previous figures of $6.44 billion. However, foreign exchange liabilities declined to $1.1 billion from $1.2 billion.



The guaranteed debt for the public sector enterprises (PSEs) increased to $151 million from $136 million, it said, adding that the non-guaranteed debt declined to $787 million from $892 million.



Pakistan’s total EDL have grown rapidly during the last couple of years.



“As against declining on average by 0.21 percent during 2001/05, the external debt and liabilities grew on an average by almost 10 percent during 2006/10,” the SBP said in the annual report on the State of the Economy 2010.



The central bank said that the rise in EDL was particularly sharp in 2008/09 when the stocks of external debt and liabilities increased by 13.8 percent. The central bank attributed it to a combined effect of drying up of non-debt, creating financial inflows and large current account deficit.



The external and liabilities has risen to $55.62 billion by the end of FY10. The increase in foreign debt and liabilities largely owes to the inflows from the IMF under the standby arrangement (SBA), the SBP said.

“Nevertheless, rapid rise in the EDL is a serious source of concern, especially when the financing needs are likely to increase in FY11, owing to adverse impact of the devastating floods and rising international commodity prices,” the central bank said.



The payment for debt servicing also increased with the rise of EDL. The country has paid $233 million as interest by the end of September, which was $205 million during the same period last year.



The payment of principal amount amounted to $1.43 billion during the period against $988 million by the end of September 2009, it added.



[color="#FF0000"]Highlights[/color]



• Govt debt stands at $44.78bn in first quarter



• IMF loan grows to $8.91bn



• Guaranteed debt for PSEs up to $151m



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