Govt in a quandary over ‘$32bn sovereign loans secured by Dar

[wp_ad_camp_1] Govt in a quandary over ‘$32bn sovereign loans secured by Dar

By Chronicler

The PTI led government is facing extreme difficulty to pay back the hidden sovereign loans amounting to $32 billion which were alleged to have been dubiously borrowed by former Finance Minister Ishaq Dar against pledging infrastructure of the country.

These loans were secretly borrowed on the name of public limited companies and they were not made part of public documents of the Finance Ministry, states a senior official of Finance Ministry in an audio message.

The official of the ministry further elaborates as how these sovereign loans with great secrecy were secured by the former finance minister.

He says whenever a loans is borrowed it becomes part of budget documents along with other revenues and expenditures of the country. However, this was not the case with these foreign loans which were kept hidden by Dar.

“Ishaq Dar made public limited companies and secured foreign sovereign loans on the names of these companies. These loans were not made part of budget documents,” the unnamed source states.

According to him these loans amounting to the tune of $32 billion were not being reflected in the public documents. When the current regime took over these dubiously secured loans of $32 billion were not part of budget documents. However, these foreign loans popped up when the government was reviewing loans’ position, the official further states.

A modus operandi to secure these foreign loans was adopted and no one except Ishaq Dar, an official of the finance ministry and Tariq Bajwa knew about these loans.

These loans became real hurdle for the incumbent government as how to tackle this situation because they were supposed to pay back these loans,” he states

This is not an issue that as how to run the government in the present circumstances. Actually they are in catch 22 position with regard to these foreign loans of $32 billion.

Roads, TV stations government buildings, motorways were mortgaged to secure these foreign loans against sovereign guarantee, the top official of the ministry further states.

He also appreciates the government’s measures which it took to reduce trade deficit by 13.1 percent and it reduced fiscal deficit at 6 percent. He says payment of loans secured by Dar on the name of public limited companies is the real concern for the current regime.

Chronicler adds: When Ishaq Dar was finance minister during the regime of PML-N government there were some talks  in the public that motorways, PTV and Radio Pakistan’s buildings and other infrastructure of the country have been mortgaged to get foreign loans. However, these informal talks could rarely get place in the mainstream media. It has been irony of the country that except former Finance Minister, Asad Umar every other finance minister told the general public about their financial polices while quoting financial terms which were beyond the limits of understanding of a layman.

The general public had no idea as what these terms would have financial implications on them.

However, now it’s the time to reap which was sown and the general public is facing the music at the moment. The rupee is facing huge devaluation against the US dollar in the market and inflation level is touching unprecedented heights.


Leave a Reply

Your email address will not be published. Required fields are marked *