News Column

KP Govt retires Rs 19874.718m expensive federal loans

July 4, 2014

The government of Khyber Pakhtunkhwa has allocated Rs 7500 million in the financial year 2014-15 for retiring expensive federal loans pre-mature, the budget documents revealed.

Realizing the debt servicing liability on the provincial budget, the government of Khyber Pakhtunkhwa decided as part of its debt management strategy to retire expensive loan of the federal government.

The Government of Khyber Pakhtunkhwa had started repayment of federal government loans from 2002-03.

An amount of Rs 19874.718 million has been repaid pre-maturely to the federal government up to 2010-11.

As a result this pre-mature retirement of the federal loans, the provincial government has generated saving of Rs 4434.520 million per annum.

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Source: Frontier Star (Pakistan)

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