Foreign cash loans, grants plunge

Foreign cash loan has declined by more than half, and grants are almost four times less in the first four months of the current fiscal year as compared to the same period last fiscal year.

During the four months of current fiscal year 2012-13, the government has received foreign cash loans of Rs 0.70 billion and foreign cash grants of Rs 4.59 billion, according to the central bank's data for mid-November.

The government had received foreign cash loans of Rs 1.55 billion and foreign cash grants of Rs 11.52 billion in the same period of the last fiscal year.

Uncertain budget and prolonged political transition has made development partners lose their confidence as there is no check and balance mechanism for government expenses due to the absence of a parliament giving enough room for financial indiscipline by the caretaker government and implementing agencies.