The National Assembly Special Committee on Foreign Loans has recommended that the details of the negotiations with donor agencies regarding loans worth more than Rs 500 million should be presented before parliament for consideration.
The decision was made during a meeting of the special committee held in the parliament house and was presided over by Ms Shehnaz Wazir Ali.
During the meeting, legislators said the parliament was not taken into confidence during negotiations with foreign donor agencies and the terms and conditions were finalised without the approval of the body. Ahsan Iqbal said the ministries should hire the services of special advisors for a better assessment of foreign loans.
“Our ministries do not have qualified people to deal with issues regarding negotiations with donor agencies therefore the post of an advisor should be made. This advisor will assist our government and will be helpful to remove flaws in our financial system,” Ahsan added. Resenting the planning commission’s failure to present its independent evaluation report over foreign and domestic loans, the committee directed the officials of the planning commission to inform Planning Commission Deputy Chairman Dr Nadeemul Haq to give a written report in ten days regarding the matter.
“Hundreds of people have been hired in departments which are already facing financial constraints,” the committee added.
Officials informed the committee that during the last four years the average fiscal deficit remained 6.12 percent and defence and debt services were a major cause of it.
Ahsan Iqbal said unrealistic figures were shown when the budget was being made.
“This is why we face such immense difficulties,” he said.
The committee asked the officials of the planning commission and the finance division to give details of the amount of money which lapsed back to the national treasury during past few years and give reasons why this amount was not utilized.
The legislative body said loans should be scrutinized before being granted. The standing committee also asked the officials to give complete details of the Fiscal Responsibility and Debt Limitation Act (FRDLA) 2005 and advise the committee how this act can be amended.
