Government manages precarious debt situation with discipline: Finance

ISLAMABAD: The government has managed the precarious debt situation with discipline, aggressive control of expenses and increase in tax and non-tax revenues. In a statement Sunday, the finance ministry said government efforts have yielded primary surplus.

The finance ministry said in the current fiscal year, the government has succeeded in keeping the stock of public debt firmly in check with virtually no increase.

The statement further said the prudent debt management has included converting short term into longer term debt and reducing the cost of the borrowing. The combined effect of these actions will contain any addition to the debt stock to a minimum.

The finance ministry clarified that the sole reason forcing the government to borrow is the requirement to pay one trillion rupees in interest on past loans in the period July to October. This is on top of 4.7 trillion rupees already paid prior to June, bringing the total amount of interest paid on past loans to a staggering five point seven trillion rupees.