Sindh government will pay around Rs 67.75 billion as interest to international financial institutions by 2050 on amounts received from these financial bodies, Business Recorder learnt here on Friday.
Sources in Sindh Finance Department said that according to an estimation the provincial government has to pay around Rs 1.5 billion every year to balance the interest rate on international loans, apart from the payment of real debt amount.
Foreign debt burden on Sindh government has exceeded Rs 123 billion during the last four to five year, which had been borrowed for execution of mega development projects in the province.
The debts have mainly been received from two organisations--Asian Development Bank (ADB) and World Bank (WB)--, of which half have been borrowed on highly inflated rates, which means that the rate of interest can be changed with variation of dollar prices in the international market.
The Sindh government has also signed several agreements with ADB and WB under which it will receive Rs 116 billion during coming years, which will take total foreign debts on the province to Rs 240 billion, sources said.
It is interesting to note that paper work and planning of some mega projects are still not complete, while the loan has already been sanctioned. "The paper work and planning of the most of projects have almost been completed and work on rest of the projects will be finalised soon," they added. However, they did not give details how the government would pay back these loans.