Last year, the government borrowed not just 11 trillion but how many trillion to finance its fiscal deficit, the finance ministry released details, surprising revelations

Islamabad (NNI) Ministry of Finance has said that the government has taken a loan of Rs 3.44 trillion to meet the budget deficit in the financial year 2018-19. In this regard, certain sections of the media borrowed 11 trillion loans from the government last year. The departments are seeking clarification. In a statement issued on Tuesday, the Finance Ministry said that the total amount of loans and payments in the financial year 2019 increased by 10.33 trillion (Rs. 29.88 trillion to 40.21 trillion). The Finance Ministry has said that last year government loans increased by Rs 7.75 trillion, of which Rs 3.44 trillion or 44 per cent of the total increase in the period was achieved to meet the budget deficit while Rs 3.03 trillion was increased. Or 39 per cent of the total increase was generated due to the depreciation of the rupee, likewise the decision by the government to not borrow from the State Bank of Pakistan in the future and raise the cash balance level, the impact of the debt of Rs 1.02 trillion Apart from this, the amount of increase of Rs 0.26 trillion is the fee value of Pakistan Investment Bonds (PIB) issued in the year, which will be used to register the loan. There is a difference between the value and the value obtained, which is registered as a budget realization. The information states that 1.09 trillion in State Bank of Pakistan's foreign exchange payment obligations. The rupee has increased, but the increase is due to foreign currency deposits of 0.73 trillion rupees (or 73%) held by banks from different countries and institutions, which is a positive development. Exchange liabilities include an amount of Rs 0.36 trillion which was created due to the depreciation of the rupee. Government institutions that borrow according to your requirements regarding rzun ministry added in a statement. Loans of these institutions increased by Rs 0.65 trillion last year, of which 0.50 trillion or 77% is additional loan which these companies received while the remaining 0.15% or 23% of the total surplus loan was reduced by Rs. The Finance Ministry further said that the debt received for commodity operations has decreased by Rs 0.06 trillion, which is a positive development. Similarly, the volume of Pakistan's private sector foreign debt in fiscal 2019 is 0.9. Trillions of rupees increased, but it was not the responsibility of the government, nor the volume of total debt and payments due to its results on foreign exchange. Joins Loans in the sector last year amounted to 0.75 trillion, the main reason being the decline in the value of the currency while the real foreign borrowing in the sector last year was Rs. 0.15 trillion or 17%. It is said that out of the 10.33 trillion increase in the volume of total loans and payments, Rs 3.44 trillion (33%) has been spent to meet the fiscal deficit while the loan amount of 0.5 trillion (5%) is official. Similarly, in the context of commodity operation, a debt repayment of Rs 0.06 trillion is a welcome thing while Pakistan Due to the difference in fee value and yield value of Investment Bonds (PIB), the increase of Rs 0.26 trillion is due to accounting policy on long-term bonds. The Finance Ministry added that the total loans increased in the last year. The increase of Rs 4.27 trillion (41%) in debt is due to the decline in the value of the rupee, which started with the previous government, which in addition to the artificial and unrealistic stability in the value of the rupee, was poor industrial and commercial. The policies were adopted which led to a huge and irreversible current account deficit, which was used to control the value of the rupee. Similarly, the government's cash balance increased by Rs 1.02 trillion (10%) and the State Bank of Pakistan's foreign exchange payment obligations increased by 0.73 trillion (or 7%). It is important to understand that in addition to cash balances, the government has cash balances and liquid assets of the State Bank of Pakistan. The additional credit of Rs 0.9 trillion from the private sector is a positive trend as it reflects the partnerships with global financial institutions to boost the country's private sector business activities.