ISLAMABAD: The Finance Ministry on Sunday claimed that the government has managed the precarious debt situation with discipline, aggressive control of expenses and increase in tax and non-tax revenues.
In a statement on Sunday, the Finance Ministry said that the government’s efforts have yielded primary surplus. The government has succeeded in keeping the stock of public debt firmly in check with virtually no increase in the current fiscal year.
The statement further said that the prudent debt management has included conversion of short term into longer term debt and reduction of the cost of borrowing. The combined effect of these actions will contain any addition to the debt stock to a minimum.
The Finance Ministry clarified that the sole reason forcing the government to borrow is the requirement to pay one trillion rupees as an interest on the past loans in the period from July to October.
This is on top of Rs4.7 trillion already paid prior to June, bringing the total amount of interest paid on the past loans to a staggering Rs5.7 trillion.