KP government running on foreign loans

• PTI-led government takes another Rs211 billion loan from int’l organisations on interest

PESHAWAR: Instead of fighting a case in Islamabad to get a due share from the federal government, the Khyber Pakhtunkhwa government opted to take a loan of Rs 211 billion on interest from international organisations to run the affairs of the province.

Due to a strained relationship between the Pakistan Tehreek-e-Insaf (PTI) and Pakistan Muslim League-Nawaz (PML-N), the province hasn’t been receiving financial aids from the centre.

According to statistics, the KP government was already in debt of Rs 115 billion and for this huge amount the province had to pay at least Rs 8 billion in interest.

Moreover, documents available with Pakistan Today stated that the mega development projects in the province have been initiated with the help of foreign loans.

The KP government spent $ 325 million on small power dams, solarisation, and a project of 300 megawatt electricity in Balakot; for Pehur High-Level Canal in Swabi, the government received $335m; $114m for energy; for roads across the province and Bus Rapid Transit (BRT) $345m were taken from the Asian Development Bank (ADB).

Similarly, for small energy projects and BRT $210 million were taken from the Bank of France.

On the request of the KP government, the World Bank also granted loan $200m for the uplift of the agriculture, $165m for mini hydro power stations, $55m for tourism, and $80m for local government’s developmental projects.

When Pakistan Today spoke to KP Finance Minister Muzzafar Said about the increase in loans and their subsequent interests, he said: “I am unaware of the details of these loan agreements.”

“The chief minister could give the government’s version regarding these loans,” he said, adding that even though he was the finance minister, he wasn’t taken into confidence over any loan accord.

Last year, the KP government had passed a bill against the private interest business but the PTI itself has been taking loans from the international organisation on interest.