Finance Minister Asad Umar on Monday chaired a meeting of the Economic Affairs Division (EAD) to ascertain about the debt management as well as loan repayments becoming due in the current fiscal year.
A statement issued after the meeting said that the briefing included financial progress of different foreign-funded projects as well as certain aspects of potential projects to be included in the pipeline in future. Additionally, the minister was also briefed on the debt management function of EAD.
The finance minister directed the EAD to make accurate assessment of the loans the country has borrowed from international lending agencies and the amount the country is required to pay back in the current fiscal year.
The minister on the occasion stated that assessment of requirement of foreign assistance was an important function and EAD should regularly update its assessment of various sectors in order to utilize the valuable resources in the most productive manner.
The EAD also briefed the finance minister on various aspects of economic cooperation with various bilateral and multilateral development partners. An official on condition of anonymity said the finance minister was given a briefing on debt repayment becoming due in the current fiscal year as well as the inflows in the pipeline, if any, by bilateral, multilaterals as well other resources.
He said that the major challenge of the country is how to bridge the financing requirement or gap for the current fiscal year and how to deal with the impending economic challenges especially on balance of payment front.
Sources also said that new finance minister was given a briefing on macroeconomic situation by the secretary finance and governor State Bank of Pakistan (SBP) a couple of days ago.
The finance minister was also briefed on the issue of circular debt and how it was impacting the power sector in general and economy in particular. He was told that without effectively dealing with the challenge, the cost of doing business cannot be reduced.
The high cost of the doing business especially due to high cost of energy is damaging the country's exports and consequently compounding balance of payment crisis, sources added.