PESHAWAR: The Pakistan Tehreek-e-Insaf (PTI) government in Khyber Pakhtunkhwa (KP) had signed agreements worth Rs1,000 billion with International financial institutions and Development organisations during over nine years rule in the province.
The largest loan of Rs109.50b has been signed for the Bus Rapid Transit (BRT) system. The Finance Department sources said the provincial government was not interested in securing province’s rights from federal government and due to lack of authority at the local level to run the provincial government, PTI government was depended on the foreign loans. Due to which the volume of foreign loans was much more than the previous governments.
Former Minister of Finance and Health of Khyber Pakhtunkhwa Taimur Saleem Jhagra said that in the last six months, the Pakistan Democratic Movement (PDM) government tried to bankrupt the province, however, he claimed that they are leaving a financially stable province. Jhagra alleged that over 75% dependence of the province was on foreign loan when the l PTI came into power in 2013. He said, “before the PTI rule, the province’s debt was Rs100 billion which was 75% of budget but today province’s own resources are over 70% while ratio of debt in the budget is just 27%.”
Currently, total volume of province’s external loans is Rs1002.49 billion of which the provincial government has so far received Rs359.33 billion while more agreements of Rs606 billion has been reached with different financial institutions for various projects. For Peshawar BRT, a total of Rs109.50 billion will be borrowed of which the Asian Development Bank (ADB) is providing Rs76.99bn while the French Development Agency is providing Rs32.50 billion.
The highest loan of Rs135.92 billion has been borrowed for transport department, while Rs60.87 billion for various economic development projects, Rs10.37 billion for education, Rs29.88 billion for health, Rs272 million for industry, Rs19.4 million for irrigation, Rs36.61 billion for energy and power, Rs3.51 billion for environment, Rs20.50 billion for regional development, Rs4.17bn for social welfare, Rs64mn for urban and rural development, Rs5.43bn for tourism, Rs985 lmn for drainage, Rs14.38 billion for agriculture, Rs13.60 billion for finance department, Rs3.66bn for health and Rs12nbn for forests.
Similarly, Rs67.60 billion has been borrowed for development projects in six cities of KP, Rs11.20bn for Pehore High Level Canal, Rs888 million for Peshawar BRT, Rs23.72 billion for access to energy from ADB, Rs5.39 billion for the rehabilitation of provincial highways, Rs6.74 billion for the two-lane Mardan Swabi highway, Rs317 million for rehabilitation and development of cities, another Rs12.18 billion will be borrowed from the French Development Agency for the Peshawar BRT, Rs55.70 billion from the International Development Association for KP Rural Support Project, Rs9.44 billion for the National Health Support Project, and Rs8.71bn for increasing sources of income in Khyber Pakhtunkhwa.
Similarly, Rs7.58 billion has been borrowed for tourism projects under the Integrated Tourism Development Project, Rs20.86bn for KP Irrigated Agriculture Improvement, Rs45.13bn for better development, Rs85.43bn for Khyber Pass Economic Corridor, Rs46.20bn for energy projects, Rs24.95bn for KP Human Capital Investment Project, Rs36.98bn from International Bank for Settlement and Development for energy project in KP, Rs33.32bn from Asian Infrastructure Investment Bank for development projects in six cities and Rs46.50bn for Balakot Hydro power Development.
