irp presentation akhlaq

By: Muhammad Akhlaq khalil

“Total outstanding borrowings of central Government comprising of internal (owing to national creditors) and external (owing to foreign creditors) debt incurred in financing its expenditure”

Short term borrowings such as Treasury Bills

Borrowings from State Bank of Pakistan

National savings Certificate

Savings bonds

Premium Bonds

Securities Repayable in foreign exchange

Govt. need a lot of money to provide for law and

order, health services, upkeep and maintenance of the

towns around you, transport (Including roads),

education, social services and the vast mechanism

needed to keep the life of that country running.

They raise most of the necessary funds from all of us,

through taxes. The problem is to get elected they have

to make promises and to keep the people who elected

them happy (so they will vote them in again) they

sometimes promise more than they can afford to

deliver.

They decide that they need to spend huge amounts of

money to keep things running and prevent whole

sections of their finely crafted way of life from failing.

This would cause great hardship and, by the way, make

sure they never got elected again. So, to avoid all these

problems they need Debt.

Domestic Debt:

Pakistan’s domestic debt comprises permanent debt

(medium and long-term), floating debt (short-term)

and unfunded debt (made up of the various

instruments available under the National Savings

Schemes).

Pakistan’s External Debt and Liabilities (EDL) include

all foreign currency debt contracted by the public and

private sector, as well as foreign exchange liabilities of

the State Bank of Pakistan.

the strong concessionality element (low cost )

The responsibility for debt management in

Pakistan lies mainly with the Ministry of Finance.

Its subsections, namely the Economic Affairs

Division (EAD) and Finance Division (FD),

maintain relevant information on almost all

aspects of debt management.

The EAD monitors aid inflows, debt servicing,

and the allocation of funds received in aid, grants,

and borrowings.

The FD is responsible for policymaking with regard to debt

The State Bank of Pakistan (SBP) also maintains

debt-related data, while the Central Directorate

of National Savings records all information on

domestic public debt raised by the government’s

National Savings Schemes (NSS).

A higher growth of public debt relative to GDP

An increase in real growth of public debt as

compared to real growth of revenues

A slow pace of revenue generation

A constant erosion of domestic currency

Poor coordination and information flow between debt

management agencies

Outdated data management systems and limited computer

access across different departments

Long term planning and project feasibility are the least

priority

personal inclinations, political motives and vested interests.

Lack of adoption of strict guidelines for effective debt

management