In a recent briefing to the National Assembly’s Standing Committee on Economic Affairs, the Secretary of the Economic Affairs Division disclosed that Pakistan plans to roll over $9 billion in loans from Saudi Arabia and China this year. However, Saudi Arabia has not agreed to resume supplying crude oil on a deferred payment basis.
The meeting of the National Assembly’s Standing Committee on Economic Affairs was chaired by Atif Khan. During the briefing, the Secretary highlighted the government’s limited resources, stating that it lacks the means to provide widespread employment or significantly improve the financial conditions of its citizens. Many government departments are taking loans, for which the government provides guarantees.
Detailing the nature of the loans, the Secretary explained that there are two types: those directly borrowed by the government from banks and those for which the government provides guarantees for loans taken by various government departments.
Committee member Javed Hanif raised concerns about the influx of foreign funding to numerous NGOs, particularly from countries like Saudi Arabia and Iran. Responding to this, the Secretary of Economic Affairs noted that it was previously very challenging for NGOs to secure foreign funding. However, the government has now facilitated this process by creating an online platform to simplify funding acquisition for NGOs. The aim is to ensure a steady inflow of dollars into the country amidst the current economic situation.
The Secretary reiterated that the government does not have sufficient resources to generate employment or improve financial conditions on a large scale, emphasizing the importance of external funding to support these efforts.
