47. Pakistan Economic Survey 2011-12 - Consultancy Services in ...

Pakistan Economic Survey 2011-12Table 3: Guarantees StockGuarantees 2010 2011 2012*Outstanding Guarantees (1+2) 603 559 4871- Domestic Currency (Rs. Billion) 329 301 2562- Foreign Currency (Rs. Billion) 274 258 231Foreign Currency (US$ Million) 3,246 2,999 2,544Source: Debt Policy Coordination Office* July-March 2012Guarantees issued against commodity operationsare not included in the stipulated limit of 2 percentof GDP as the loans are secured against theunderlying commodity and are essentially selfliquidating and thus should not create a long termliability for the government. The quantum of theseguarantees depends on the supply-demand gap ofvarious commodities, their price stabilizationobjectives, volume procured, and domestic andinternational prices. The guarantees were issuedagainst the commodity financing operationsundertaken by TCP, PASSCO, and provincialgovernments. As of April 2012, the outstandingstock of Rs. 303.9 billion against the end-June2011 position of Rs. 397.5 billion indicates aretirement of Rs. 93.6 billion on behalf ofcommodity financing operations.260