Several development projects planned for the new financial year will heavily depend on external funding, according to the budget documents for the fiscal year 2024-25. The federal and provincial governments have decided to take an external loan amounting to Rs932 billion to finance these initiatives.
The federal government plans to borrow Rs316 billion, while the four provinces collectively will secure Rs616 billion in external loans. Sindh is set to take the largest share, borrowing Rs334 billion, highlighting its significant reliance on external funding for its development agenda.
Khyber Pakhtunkhwa will depend on external debt amounting to Rs131 billion for its development projects. Punjab will secure Rs123 billion in external loans, and Balochistan borrow Rs29 billion for its development projects in the next financial year.
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In response to a request from the International Monetary Fund (IMF), details of investments from local sources were also shared.
Various departments are projected to spend Rs196.89 billion from their resources on development projects.
Moreover, the National Transmission and Dispatch Company (NTDC) and distribution companies (DISCOs) will invest Rs102.23 billion from their own resources.
The reliance on external loans underlines the financial challenges faced by the country in funding its development agenda. The significant borrowing also reflects the ambitious scale of the development projects planned across the country.
