Foreign loans during FY2011-12: Only budgetary support for Punjab came from WB
LAHORE: The Punjab government has estimated an amount of Rs 8,742.434 million under the Budget estimates 2012-13 for the permanent debt-foreign in the financial year 2012-13.
Direct debt and loans borrowed from or through the federal government i.e. domestic and foreign loans comprise the permanent debt of the provincial government, sources said, adding, “During FY 2011-12, the inflow of Current Capital Receipts received a severe setback as releases to Punjab government by ADB were made conditional to issuance of clearance letter by the International Monetary Fund.” According to sources, during FY 2011-12, the government only received budgetary support loan from World Bank under Punjab Education Sector Reforms Program.
Sources claimed that under public debt, finances for food commodity purchases are raised through what is known as ‘Cash Credit Accommodation.’ This is currently being carried out through a consortium of banks organised with the assistance of the Bank of Punjab. Under this arrangement wheat grain is procured directly from farmers by the Food Department, and financed by the banking consortium. The Revised Estimates 2011-12 of ‘Recoveries of Investment-State Trading Schemes’ was Rs 92,225.545 million compared to Budget Estimates 2011-12 of Rs 153,588.970 million on account of lower than targeted sale of wheat during the financial year.
Sources further claimed that the Budget Estimates 2012-13 for Development Capital Receipts is Rs 11, 487.514 million compared to Budget Estimates 2011-12 of Rs 18,610.000 million and RE 2011-12 of Rs 11, 397.000 million.
According to them, Development Capital Receipts comprise loans borrowed from multilateral donor agencies through the federal government for specific foreign-assisted development projects. A complete list of projects for which the above mentioned Development Capital Receipt is to be utilized under Budget Estimates 2012-13 is as under: Land Records Management Information System Project (Rs 912.000 million), Punjab Irrigated Agriculture Improvement Program Project (PIPIPP) (Rs 3,415.514 million), Rehabilitating Lower Chenab Canal System (Part B) (Rs 310.000 million), Punjab Municipal Services Improvement Project (Including Sustainable Development of Walled
City Lahore) (Rs 957.000 million), Establishment of Govt. Institute of Emerging Technologies, Raiwind Road, Lahore (Rs 232.000 million), Punjab Irrigated Agriculture Improvement Project (Rs 100.000 million), Lower Bari Doab Canal Improvement Project (Rs 1,000.000 million), Punjab Irrigation System Improvement Project (Rs 1000.000 million), Punjab Barrages Improvement Phase-II Project (Jinnah Barrage) (Rs 700.000 million), Renewable Energy Development Sector Investment Program (Rs 1400.000 million), Renewable Energy Development Sector Investment Program (Rs 100.000 million), Extension of Water Resource for Faisalabad City Phase-I (Rs 75.000 million), Southern Punjab Poverty Alleviation Project (Rs 736.000 million), New Khanki Barrage Construction Project (Rs 500.000 million), and Lahore Water Supply, Sewerage & Drainage Improvement Project (Rs 50.000 million)