Ministry of Finance shares details of foreign loans in Senate

ISLAMABAD: The Ministry of Finance informed the Senate on Friday that the government borrowed $4.11 billion from the World Bank to bankroll various schemes of 21 institutions.

It said $3.66 billion worth of funds were borrowed from the Asian Development Bank (ADB), $1.68 billion from the Islamic Development Bank, and $800 million from Asian Infrastructure Development Bank.

The ministry said the process of repayment of the International Monetary Fund (IMF) loans will commence from 2024 and continue until 2032. The government signed as many as 21 agreements with the World Bank and 22 with the Asian Development Bank, it added.

A total of 58 agreements were signed with international money lenders for bringing reforms to government institutions.

Meanwhile, Minister for Industries Hammad Azhar told the house that the stimulus package of Rs1,240 billion announced by the government in the wake of the pandemic has provided necessary succor to different sectors, including the SMEs. He said the economic indicators are positive with remittances witnessing a 20 per cent increase as compared to previous years. He said the FBR is exceeding its revenue targets which manifest increased activity in the industries including automobiles and textiles.

He said despite resistance from some quarters, the government has strengthened money laundering laws. Money laundering has now been declared a cognizable offense, he added.

The minister expressed the confidence that the country’s progress in this regard will be noted by the Financial Action Task Force (FATF) in its next meeting. He said the present government has shown seriousness to the action plan of the FATF.