Is PM Imran Khan Telling the truth about debt-trap left by PMLN?

[Munawarkhan]

PM Imran Khan and PTI leaders have been railing against the PML-N for leaving Pakistan in a debt-trap. But are they telling the truth? I looked at the data, and my conclusion is that the PML-N has left Pakistan in a debt-trap, and its borrowing policy has been disastrous.

Let’s start with the overall picture:

In FY13, Total Debt & Liabilities stood at Rs16,339, which was 72.7% of GDP. This increased by a whopping 82.8% in five years to Rs29,861 to 86.8% of GDP in FY18.

• Government domestic debt during went from Rs9,521 to Rs.16,415,
• Government external debt from Rs4,311 to Rs7,795 from FY13 to FY18.
• The total debt of Public Sector Enterprises (PSEs) ballooned from Rs521bn to Rs1,393bn during this same period,
• & domestic portion of this debt more than doubled as a percentage of GDP, going from 1.4% of GDP in FY13 to 3.1% of GDP in FY18.

In its last year, the government mostly relied in external borrowing, with the majority of these loans “contracted on floating interest rates” according to the SBP. The negative impact of this is already being seen due to “upward trend in LIBOR” according to the SBP. What’s even worse is that the PML-N relied on short-term borrowing to meet its financing needs, increasing “exposure to refinancing and interest rate risk.”

They also borrowed heavily from commercial lenders at “higher rates” and “shorter tenors” leading the average maturity to decline from 21.1 years in FY10 to 10.9 years in FY18. ​

​

All of this means that in addition to owing record sums of money, Pakistan is exposed to refinancing and interest rate risks, and as global interest rates rise due to a tighter monetary policy of the US Fed, these risks will mount even further. All in all, the analysis of debt figures shows that the PML-N’s debt policy was woeful and has brought Pakistan on the brink!

Data comes from the latest SBP Annual Report, and the relevant section can be found here.
State Bank Annual Report FY18

This thread was posted on twitter by
Uzair Younis

 

[Anuuge67]

CORRECTION.. IT IS CALLED A JEW CREATED DEBT TRAP TO ENSLAVE MANKIND BY THE CARRION BIRDS OF HUMANITY.
SITTING IN WASHINGTON AND HELL EVIVE.

CALL A SPADE A SPADE POLICY.TRUTH ZIONIST MONEY CHANGERS FROM SYNAGOGUE OF SATAN ARE IN CHARGE OF JEWISH/ AMERICAN DOLLAR WITH IT'S SATANIC SYMBOLS IN IT.

TAKE A CLOSER LOOK. AND LOOK AT THE DESIGNS OF BAHERIA TOWN, YOU WILL SEE THE SIMILARITIES.
MALIK RIAZ MOSSAD.

 

[mercedesbenz]

گھر کو آگ لگی گھر کے ھی چراغ سے ان سب نے ایسا گھر کو لوٹا ایسے تو کوئی بیگانہ چور بھی نہیں لوٹتا بے دردی سے غریبوں کو لوٹا گیا یہ سرا سر آرٹیکل چھ کی واردات ھے۔

 

[Nightcrawl]

He is telling the truth all our problems mostly are created by zardari and nawaz ganja

 

[hawkinthesky111]

He is telling the truth all our problems mostly are created by zardari and nawaz ganja

i second this...

 

[Aslan]

Nawaz dakoo was only interested in clinging to power.His policies were for short term only.He only started projects which were to win him elections.Don't forget Pakistanis don't understand the importance of quality education(esp science and tech),health or good governance or meritocracy.they want to see roads and metro.Nawaz gave them roads and metros build using loans.Nawaz did not make any attempt to make any reforms.Without reforms Pakistan can not progress.

 

[Munawarkhan]

PTI should really enhance its communication team.

I have seen Miftah Ismail, multiple times misguiding public on these stats on TV shows.
Being an ex-Finance Minister, anchors believe him and the PTI counterpart normally cannot rebuff this claims.

 

[thinking]

After independent Audit of last 10 years all loans.. Power Projects..Lng..lpg agreements..Nawaz.. Zardari.. thiers finance ministers and all cabinets members who approved these loans and projects..they all trial under Article 6...hanged them all except those who ready to give thiers 70% local and abroad properties..money to Pakistan.

 

[surfer]

PTI should really enhance its communication team.

I have seen Miftah Ismail, multiple times misguiding public on these stats on TV shows.
Being an ex-Finance Minister, anchors believe him and the PTI counterpart normally cannot rebuff this claims.

This has always been PTI's problem. Too many jazbati members who just want to be on TV. Majority of them are too lazy to actually reseach and prepare.

 

[Steyn]

All i know is PMLN and PPP are Munafiqeens and anything bad you say about them isn't enough.

I would be surprised if they have done anything good for the country.