Quetta: The State Bank of Pakistan has converted Balochistan's over draft of Rs17.5 billion into a soft loan that would be payable over six years.
The former PML-Q led coalition government had obtained around Rs18 billion over draft from the State Bank crossing the limit of its loan facility from the central bank due to increasing provincial expenditures.
Official sources said on Friday that by converting the over draft into soft loans, the Balochistan government would save Rs700 to 800 million annually, which it was paying to the Sate Bank as markup.
The Provincial Secretary Finance, Mahfooz Ali and Director Finance State Bank of Pakistan signed the agreement.
Sources said that according to the agreement, the markup rate against the loans will be 11.9 per cent. This rate will remain fixed for a period of six years.
The Secretary Finance Mahfooz Ali Khan said the financial crisis being faced by Balochistan would be eased by this development, and the province will be able to generate more resources for development projects.
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