EAD Briefing Reveals Pakistan's External Debt Challenges

The Senate Standing Committee on Economic Affairs recently received a briefing highlighting that Pakistan's total external debt has surpassed $130 billion. The budget management process involves key entities such as the finance ministry, central bank, and Economic Affairs Division (EAD).

During the briefing, Secretary Kazim Niaz of the EAD clarified that loans extended to autonomous authorities are overseen by the relevant ministry. It was emphasized that the EAD does not handle IMF matters, as this falls under the jurisdiction of the finance ministry. However, the EAD is responsible for managing relationships with the World Bank and the Asian Development Bank (ADB). Additionally, the planning ministry is tasked with overseeing all aspects of the China-Pakistan Economic Corridor (CPEC).

One notable strategy mentioned was the use of Government Concessional Loan (GCL) for borrowing from Chinese banks, as the US does not provide bilateral loans to Pakistan. The committee also requested detailed information on IMF loans, which officials have agreed to provide. The EAD is currently managing a total of 298 projects, comprising 146 multilateral projects and 152 under bilateral agreements and IMF loans. However, concerns were raised during the briefing regarding the 54 vacant positions within the EAD, indicating a lack of government commitment, as pointed out by committee member Kamran Murtaza.

The briefing provided valuable insights into Pakistan's external debt situation and the management of international financial relationships. It highlighted the complexities involved in handling loans from various sources and the need for effective coordination among government entities. Moving forward, addressing the vacant positions within the EAD will be crucial to ensure efficient project management and financial oversight.