Pakistan seeks $15b loans in FY21
> Pakistan plans to seek $15 billion gross foreign loans in the next fiscal year aimed at servicing its maturing external public debt and building official foreign exchange reserves in the absence of non-debt creating inflows.
> Out of the $15 billion estimated external borrowings in fiscal year 2020-21, nearly $10 billion or – two-thirds, will be used to return the maturing loans, excluding interest payments, said sources in the Ministry of Finance. The remaining slightly over $5 billion will become part of the external public debt that has already increased to $86.4 billion as of end March this year.
> The estimated $15 billion borrowings will be the highest loans to be taken by the country in a single year, highlighting challenges that every government faced due to the deepening debt trap. The Pakistan Tehreek-e-Insaf government, like its predecessor, has also remained unable to fully capitalise non-debt creating inflows like exports, remittances and foreign direct investment.
> Because of inability to enhance non-debt creating inflows, Pakistan’s $12 billion gross official foreign currency reserves held by the State Bank of Pakistan (SBP) are largely the product of borrowings – a phenomenon that was also common in the Pakistan Muslim League-Nawaz (PML-N) era
AB TAX CONSULTANTS 
Let’s see what happen this year.
how deal with crisis by PTI Government.
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