Islamabad: The Federal Cabinet was informed that the government is focusing on increasing exports and foreign exchange reserves.(Visa Policy for Afghanistan)
The cabinet, which met in Islamabad today with Prime Minister Imran Khan as president, was informed that the government has taken important steps to significantly reduce the primary fiscal deficit, improve the nature and quality of domestic and foreign lending and introduce new loan-related products.
The cabinet was informed that the government inherited a debt of 30 trillion rupees, thus it had to take out 24 billion dollars in loans to pay the installments of these loans and avoid the bankruptcy of the country.
The meeting was informed that the government is paying $ 10 billion per year in loans instead of $ 5 billion as was the practice in previous governments.
The cabinet was informed that last year there was an increase of 7.7 trillion rupees in government loans due to the restoration of the original value of the Pakistani currency, while the coronavirus pandemic causes a loss of revenue of one trillion rupees.
The meeting was informed that the primary deficit has been reduced from Rs 1.5 trillion to Rs 1 trillion in the current year.
In March this year, a primary surplus of Rs 0.2 trillion was recorded for the first time in 12 years.
The cabinet also approved the proposed visa policy for Afghanistan and allowed British airline Virgin Atlantic to initiate flights between Pakistan and the United Kingdom.
The meeting allowed one-time pre-shipment to the pre-shipping agencies regarding the import of wheat by the Pakistan Trade Corporation.
With regard to measures to reduce circular debt in the electricity sector, Cabinet was informed that circular debt has registered a reduction of more than 300 billion rupees in total debt of 853 billion rupees due to the effective measures. adopted by the government during the current year.
Cabinet noted that following the renegotiations with independent power producers and the streamlining of the return on capital hedging, the benefit of Rs 620 billion in circular debt is expected.
The meeting was informed that transmission and distribution losses are continuously decreasing.
Regarding the opening of schools, the cabinet was informed that educational activities will be restored throughout Pakistan from tomorrow, reviving the education of 30 million schoolchildren. The cabinet emphasized strictly implementing precautionary measures, including wearing masks to prevent the spread of the coronavirus.