The Sindh government is also taking loans from international financial institutions like the federal government (Photo File).
Karachi: The debt burden on the Sindh government will exceed one thousand billion rupees by the end of the next financial year.
The sharp rise in debt is a result of the devaluation of the rupee, as well as the continuous increase in expenditure of the Sindh government, despite the empty coffers, which are being met by taking loans from international financial institutions.
In the name of providing facilities to the people, the Sindh government is also following the policy of dependence on federal loans in increasing the debt burden on the people of the province. At the end of the financial year 2021-22, the value of domestic and foreign loans owed to the Sindh government was 20 billion 90 crore rupees, of which half was taken from local and half from foreign institutions.
Sindh government’s policy of relying on debt to accelerate development in the province increased the debt burden to 874 billion 70 crore rupees at the beginning of fiscal year 2023.
The Sindh government borrowed 5 billion 98 billion rupees from the Islamic Development Bank and the World Bank, 2 billion 13 billion rupees from the Asian Development Bank, 33 billion 40 million rupees from IFDA, 11 billion 36 billion rupees from other financial institutions, 14 billion 33 billion rupees from Japan, while from local sources. Loans of 13 billion 92 crore rupees were taken, thus the debt burden increased by 853 billion 79 crore rupees within a year.
The Chief Minister of Sindh attributed the increase in interest dues on loans as a result of depreciation of the rupee, however, the debt statistics prove that the government has extended its hand to the international institutions for development work in the province. has happened
Also read: Prohibition of interest on private loans bill presented in Sindh Assembly
The government of Sindh will pay 96 billion rupees in interest and debt in the next fiscal year, which includes interest payments of 47 billion 43 billion rupees. The value of foreign loans will reach 1088 billion rupees, which will include foreign loans of 1077 billion rupees and foreign loans of 10 billion 55 crore rupees.
In the next fiscal year, the Sindh government will receive loans worth 134 billion rupees from the Islamic Development Bank and the World Bank, 53 billion 90 billion rupees from the Asian Development Bank, and 72 billion 35 billion rupees from the International Bank of Reconstruction and Development.
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