Lahore
Chairman Pakistan Industrial and Traders Association Front (PIAF) Mian Nauman Kabir has said that Pakistan’s total debt and liabilities skyrocketed to around Rs36.3 trillion, which were rising at a high speed in the wake of a soaring budget deficit.
In a joint statement with senior vice chairman Nasir Hameed and vice chairman Javed Siddiqi, he said that Pakistan’s fiscal policy continued to focus primarily on macroeconomic stabilization instead of putting more emphasis on reforms to foster long-term growth through industrialization. He sought growth-friendly policies, upgraded tax and social spending, and active industrial strategies in close consultation with real stakeholders to achieve sustainable development goals.
Mian Nauman Kabir opposed the excessive borrowing policy of previous governments, as the incumbent government has also added an additional Rs11.35 trillion in the total public debt during the first two years in power, which is more than the total debt the previous government has taken in its five-year term.
He observed that over 40 percent of the additional debt in the past two years is only because of debt servicing expenditures while about 30 percent due to rupee devaluation, which was depreciated almost 47 percent during this period. He flayed the economic managers for keeping the interest rate artificially high at 13.25 percent during this period, besides devaluing the rupee more than the requirements, contributing most to lift the public debt.
The PIAF Chairman lamented that if nation today decides to retire all its public debt, it would have to give up almost 87 percent of its gross domestic product, which is presently standing at Rs41.7 trillion.—INP
