Khyber Pakhtunkhwa borrows Rs 22 billion from foreign banks in five years

The provincial government of Khyber Pakhtunkhwa has obtained foreign loans to the tone of Rs 22.021 billion from different international monetary institutions and assistance amounting to Rs 5.531 billion from donor agencies during last five years.
The information was provided to the legislators of the provincial legislature of the Khyber Pakhtunkhwa in response to a question by the department of Planning and Development. The question was submitted by Malik Qasim Khan Khattak, a JUI-F legislator from district Karak.
According to the details of the reply submitted to the provincial assembly, the provincial government during first year of the five years obtained a loan of Rs 5.589 billion and received another amount of Rs 867.58 million in form of assistance during the financial year 2005-06.
In the year 2006-07, the province got loan of Rs 7.039 billion and Rs 935.581 million as assistance or grant from the foreign banks and donor agencies. Similarly, the provincial government obtained a loan of Rs 7.209 billion and assistance of Rs 766.103 in 2008-09 and Rs 4.462 billion as loan and Rs 2.181 billion as assistance in 2009-10 respectively.
The provincial government had paid a mark up to the tone of Rs 4.107 billion on the loans during the period of last five years. The province has paid the highest amount of Rs 1.252 billion in head of mark up on foreign loan in 2008-09 and Rs 1.112 billion in the financial year 2009-10.
Similarly, the province has also paid an amount of Rs 632.00 million in 2005-06, Rs 564.800 million in 2006-07 and Rs 545.000 in 2007-08 respectively in head of mark up on the foreign debts. The reply of the department said that the amount received both in shape of foreign loans and assistance have been spent in heads of rural and urban development and social sector including education, health, clean drinking water and population welfare. The loans and assistance have also been spent on construction of roads, bridges in rural areas and highways, industrial development, promotion of technical education, advancement in energy sector and development of forests in the province.