Governor State Bank of Pakistan (SBP) Jamil Ahmed Khan has admitted that the business community was facing problems and unless the money will come from outside they could not release the money.
Briefing the National Assembly’s Standing Committee on Finance the Governor said that discussions were being held to roll over commercial loans of different countries of $8.3 billion, commercial loans of $1.1 billion have to be repaid and now Pakistan will have to repay loans of $4.5 billion instead of $ 13 billion.
He said that loans worth $4 billion had been received in the current fiscal year and another $4 billion was likely to be borrowed while a total of $18 to $19 billion loans have been expected in the current financial year.
Governor SBP said that before opening LCs permission from SBP was only for 15 percent of imports. He said that there were challenges but the way this situation was portrayed was not correct.
He said that meetings have been held with the business community and their suggestions will come out.
Minister of State for Finance Ayesha Ghous Pasha told the standing committee that the circular debt of the gas and power sector had increased to Rs4,000 billion.
She said that the current government started the IMF’s suspended program of the previous government. She said that if they will sell energy at less than the buying rate then the IMF will not talk.