Govt likely to take loans of $9.69b in FY2018-19

The Pakistani government is likely to take a loan of $9.69 billion during fiscal year 2018-19.

According to the Economic Affairs Division, the government can issue euros and sukuk (Islamic) bonds worth $3 billion, while loans of $2 billion can be taken from commercial banks.

The government is likely to take loans of $840 million from China.

The Asian Development Bank can lend Pakistan $1.38 billion, Islamic Development Bank can provide $1 billion and World Bank can loan out an amount of $700 million.

During July 2018, Pakistan took a loan of nearly $470 million.

State Bank of Pakistan issued details of government dues and loans at the end of fiscal year 2017-18 on August 28, according to which the government’s debt has reached Rs29.86 trillion.

Furnace oil prices fall   

On the other hand, the price of furnace oil has declined, leading to speculation that electricity production prices would also go down.

The price for a tonne of imported furnace oil has gone down by Rs1,365, bringing it to Rs80,811.

Local furnace oil rate has fallen by Rs1,938, bring the per tonne rate to Rs77,296.

Last year, government banned the import of furnace oil in order to encourage LNG-based generation in the country.

The ban was lifted a few months later, when the Economic Coordination Committee of the Cabinet allowed the state-owned Pakistan State Oil (PSO) to import furnace oil for the power sector.

The directives were given by the then premier, Shahid Khaqan Abbasi, of the Pakistan Muslim League-Nawaz that had promised to pull the country out of the power crises it has been in since years now.

The state-owned petroleum company was directed to help create the furnace oil stock for power plants, according to reports.