ISLAMABAD: Pakistan paid Rs490bn in interest on domestic and foreign debt during the first nine months of the last fiscal year, highlighting the growing burden of debt servicing on the national exchequer, according to documents submitted to the National Assembly.
The Ministry of Finance sumitted the documents, also detailing the utilisation of foreign loans and the progress of major development projects being financed through external borrowing.
A significant portion of foreign loans was used to support the balance of payments and provide cash support, with $11.42 billion allocated for these purposes, according to the documents.
The government also utilised $3.09 billion in foreign loans for energy projects and $1.69 billion for flood rehabilitation.
According to the Ministry of Finance, 14 major national projects are being financed through external borrowing. Seven major projects under the Ministry of Energy are also being developed with foreign loans.
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The documents revealed that the $3.38 billion Saudi Oil Facility programme was being financed through external borrowing. In addition, a $2 billion International Islamic Trade Finance Corporation (ITFC) oil and LNG financing programme was supported through borrowed funds.
Several major energy and infrastructure projects are also being financed through foreign loans. These include $247.6 million for the Jamshoro power project, $475 million for the Tarbela extension project, $225 million for the Dasu hydropower project and $93.22 million for the Mohmand Dam project.
The Transmission Modernisation Project is also being financed through an external loan of $192.87 million, the documents stated.
Other projects being supported through foreign borrowing include the Sukkur-Multan Motorway and the Karachi Mobility Project.
The documents further disclosed that a $1.5 billion Building Resilience programme was among the initiatives supported by external financing. Projects relating to higher education, climate change and natural disaster management are also being financed through foreign loans.
The total value of the 14 major projects being implemented with external financing stands at $11.86 billion, according to the Ministry of Finance.