The incumbent government has paid an interest of Rs. 5.7 trillion on the loans taken by the previous regimes, said a national news platform while quoting the Ministry of Finance.
Sharing the details of the debt, the ministry stated that the amount of debt had increased due to the failed economic policies of the previous governments as they had focused mainly on short-term loans.
The ministry added that the previous governments had deliberately stabilized the rupee at a lower rate, which had led to a severe economic crisis.
A statement by the ministry said, “A change in the exchange rate in the incumbent tenure also led to the increase in debts by Rs. 3000 billion”, adding that “an increase of 47 percent in debt payment during the incumbent tenure was due to the previous loans as the government paid Rs. 5.7 trillion interest on them”.
The ministry quoted the figure of Rs. 2.5 trillion as the primary loss due to the “wrong policies of the previous governments”.
The Minister for Finance, Abdul Hafeez Shaikh, remarked during the recent session of the Senate that the government had to rush to the International Monetary Fund (IMF) to address a financial crisis owing to the previous debts.
“The previous government’s policy to lower the dollar rate intentionally had hurt the country’s economy badly,” he said.
The minister also disclosed that the past governments had resorted to injecting dollars from the country’s reserves to maintain its rate at low prices in the market.