Govt borrowing to pay off debt: Hafeez Sheikh - Hum News

Govt borrowing to pay off debt: Hafeez Sheikh

June 12, 2019

ISLAMABAD: Finance Adviser Dr Abdul Hafeez Sheikh said on Wednesday that the government was borrowing loans from international lenders to pay off interest on debt.

Speaking at a post-budget press conference along with Federal Bureau of Revenue chief Shabbar Zaidi, Energy Minister Omar Ayub, Revenue Minister Hammad Azhar and others, Dr Sheikh claimed that the Pakistan Tehreek-e-Insaf government has presented a “balanced budget” under the current financial condition of the country.

He said that the government was bound to pay back interest to international lenders against the loans taken by previous governments.

The adviser said that the PTI government has inherited Rs3,100 in debt from the previous governments but the current government was bound to return interest and the actual amount to the lenders.

He said that the loans have been obtained in dollar terms and they have to be repaired in the same term. He said that the country’s exports were at the lowest with trade deficit touching an all-time high of $40.

Dr Sheikh said despite difficult economic situation, the government has enhanced allocations for protection of vulnerable segments of the society and development projects in the next year’s fiscal budget.

Omar Ayub said that the army has rendered a great sacrificed by not seeking extra defence budget despite their engagement in the war on terror.

Shabbar Zaidi said that certain industrial and non-industrial sectors have been identified which will be brought to the tax net to boost overall revenues.