Government’s Plan To Repay Over 71 Trillion Rupees In Debt Revealed

The plan of the government has come out regarding how the debt of more than 71 thousand billion will be removed, the decision has been taken by the federal government to reduce the country’s dependence on additional loans.

According to a report in Moqar Qaumi newspaper, the Ministry of Finance has stated that the government will simultaneously build debt repayment capacity, mobilizing more and more concessional external financing.

According to the plan, ongoing multilateral projects funded by international loans will be completed swiftly. Improvements will be made to national savings schemes to increase savings. The government also mentioned in the plan that the issuance of bonds will expand its presence in the international market.

Pandas, Eurobonds, and international Sukuk will be issued in the global markets, steps will be taken to reduce refinancing and interest rate risks, structural reforms in institutions, and widen the tax net, according to the Ministry of Finance.

According to the Ministry of Finance, the debt relief plan also includes the reduction of financial deficits, reducing the financial deficit will bring economic stability to the country, and as a result of stability, the country’s dependence on additional loans will be reduced.

Apart from this, expansion in investment, domestic debt capital market will be activated, and contacts with domestic and foreign investors will be increased.

According to the plan, a non-bank sector will be established in the coming years, which will include the creation of pension funds, insurance companies, and asset management firms. Additionally, the plan aims to promote the development of a Sharia-compliant debt market in the coming years.