Pakistan receives $30.721bn external loan in last 10 years

ISLAMABAD: Senate Standing Committee on Finance, Revenue and Economic Affairs was informed on Thursday the country received loans worth of US $30.721 billion during the last 10 years from different countries and international institutes.


Among those, through international multilateral donors, the country received loan of $22.799 billion while from different countries it received a loan of $7.921 billion, an official of Economic Affairs Division told the meeting here.

Giving details about the donor-wise loans, the official said during the last 10 years International Development Association (IDA) provided loan worth of $8.35 billion, Asian Development Bank (ADB) provided $8.335, Industrial Development Bank (IDB) (ST) provided $3.813, IDB provided $1.139, International Board of Reconstruction and Development (IBRD) gave loan of $904 million, International Fund for Agriculture Development (IFAD) gave $158 million, OPEC Fund provided $90.97 million and European Investment Bank (EIB) provided loan of $5.59 million.

Similarly, the meeting of the committee was told that China provided a loan of $5.309 billion, Japan $1.118 billion, Saudi Arabia $ 979.32 million, France $150 million, Kuwait $144.22 million, Germany $120.43 million, Italy 52.61 million and Korea $46 million.

The committee was informed that the loan of International Monetary Fund (IMF) was not included in this regard.

The committee which was held under the chairmanship of Senator Saleem H Mandviwala, also discussed the agenda of privatization of Heavy Electrical Complex (HEC) and got briefing in this regard from the Privatization Commission (PC).

Muhammad Zubair, Chairman Privatization Commission on the occasion told the committee that the Expression of Interest (EOI) for the acquisition of 97 percent shares in the HEC was published in the newspapers on December 15, 2014 and three parties Elahi Electronics, Fauji Fertilizer Company Limited and Cargill Holding Limited submitted their statement of qualification documents by the due date.

He said only Cargill Holding deposited the earnest money of Rs 25 million while the remaining two bidders failed to do the same by the closing date.

He said the Privatization Commission Board, after thorough deliberations in its meeting held on March 11, considered the recommendations of the negotiation committee and mandated the chairman and secretary PC to conduct further negotiations with the sole bidder.

Cargill Holding offered to take up all the existing bank liabilities of the HEC, retain all HEC employees and pay Rs 250 million in cash to the PC, the committee was further informed.

After receiving the final offer from Cargill Holding, the PC Board recommended that the offer of the sole bidder may be approved.

The Cargill Holding however failed to pay the dues by due date and its cheque amounting to US $2,205,885 could not be honored therefore the PC may annul the sale of HEC, forfeit the Earnest Money and inform the bidder accordingly.

The committee decided to form a sub-committee to further discuss the matter in detail.

The sub-committee would be headed by Senator Ilyas Bilour with Senator Mohsin Aziz and Senator Mohsin Leghari as its members.

The meeting was also attended by Senators Ilyas Ahmed Bilour, Sardar Fateh Muhammad Hassani, Mohsin Aziz and Saeed Ghani.