DOHA. Sept 8: Surging oil prices and rising gas revenues are improving Qatar's budget and current accounts, but the Gulf Arab state is still short of hard cash as It strives to cut Its debt burden, bankers and economists said yesterday, reports Reuters.

The domestic market remains lifeless, although externally financed oil, gas and petrochemical projects are going apace, one | banker said, adding the government's priority was to repay debt and boost reserves.

The governments external debt stands at 67.3 billion 60 per cent of the revised 1999 GDP of which $5.4 billion is direct debt and the rest is government guaranteed public sector debt.

There will be no loosening of the purse-strings until the worst of the country's external debt repayments are over, said an official at the Ministry of Finance. Economy and Trade.

Official projections estimate Qatar has to pay $1.15 billion this year and $1.6 billion next year on debt servicing.