Punjab and Balochistan governments took Rs 86.51 billion loans from SBP: National Assembly informed

There was total Rs 86.51 billion outstanding loan against Punjab and Balochistan governments on September 22, 2010, taken from the State Bank of Pakistan. According to details, Punjab government obtained Rs 66.699 billion loan and Balochistan obtained Rs 19.807 billion from the State Bank of Pakistan, while Sindh and KP did not get any.
In a written reply to a question in the National Assembly, Finance Minister Dr Abdul Hafeez Sheikh said that the loans were not obtained by the provinces in a single go; rather the Bank allows 'Way and Means' facility to the provinces. He said that the loans of Punjab and Balochistan governments were accumulated through the said 'Ways and Means' advance facility over a period of time.
Replying to supplementary questions, State Minister for Finance Hina Rabbani Khar informed the House that the State Bank of Pakistan (SBP) was making a policy to write off agriculture loans. In this regard the SBP has constituted five to six committees which are conducting survey in flood affected areas to write off loans, she said.
"Report of these committees would be placed in the Parliament. The SBP is an independent body and would decided whether the loans will be waived off and, if it did so, then how much amount will be written off," she added. Amir Maqum of PML-Q said that the previous government had announced to write off loans of earthquake affected people, but in this regard it did not take any initiative. "Does the government intend to write off loans of earthquake affected people?"
The Minister said, "We are going to hold meeting with Chairman of the Zarai Taraqiati Bank Ltd (ZTBL) on Wednesday. We will discuss in detail about writing off agriculture loans." In a written reply to a question, Hina told the House that International Fund for Agricultural Development (IFAD) would provide financial assistance of $25.17 million to Pakistan during the current calendar year for financing the on-going projects.
She said that the funding is available for the period June-August 2010. She said that this assistance would be provided for Restoration of Earthquake Affectees, AJK Community Development Project, Micro Finance Innovation and Outreach Project, Programme for Increasing Sustainability in Micro Finance, Crop Maximisation Support Project and South FATA Development Project.
She said that two loans amounting to $59.5 million have been committed by France for development projects during July-September 2010-11. She said that the government did not take any loan for non-development projects during this period. In another written reply to a question, Dr Hafeez said that the payment schedule for domestic debt includes budget interest payment of Rs 621.8 billion for 2010-11. "In external debt, $2.352 billion and $897.2 million of principal and interest payments respectively are estimated for 2010-11," he added.
He said that when converted in Pak rupee, the budgeted estimates for external debt payment in respect of principal and interest amount to Rs 203.4 billion and Rs 77 billion respectively. The Minister said in another reply that First Women Bank (FWB) had granted loans of Rs 8.652 billion to 1,238 borrowers during the period January 2009 to June 30, 2010. Similarly, he said, Zarai Tarqiati Bank disbursed Rs 79.012 billion loan among 596085 farmers at district level during the financial year 2009-10. He said that the Bank has planned to give Rs 80 billion loans to 641,530 farmers.