WHEN I learned that Pakistan had been appointed chairman of the Borrowers Platform, a forum representing developing countries facing debt challenges, I found myself caught between pride and concern. Diplomatic recognition is welcome, but should we really celebrate leading a group of borrowing nations when our own economy has struggled with financial dependence for decades?
There was a time when Pakistan’s economic standing told a different story. Historical accounts suggest that in 1963, Pakistan extended a loan of Rs 120 million to West Germany. Today, more than six decades later, we remain trapped in recurring fiscal crises, mounting debt obligations and repeated appeals to international lenders.
Borrowing is not necessarily a weakness. As someone with a background in finance, I recognise that responsible borrowing can stimulate investment, create employment and strengthen economic growth. The real problem begins when new loans are needed simply to repay old ones or sustain expenditure that the country can no longer afford.
What troubles me most is the contradiction between our financial condition and the lifestyle maintained within parts of the state machinery. Expensive official vehicles, elaborate protocols and generous privileges hardly reflect the circumstances of a country repeatedly seeking financial assistance. Public officials certainly need appropriate facilities, but those facilities must reflect economic reality.
Meanwhile, ordinary Pakistanis are struggling to pay electricity bills, manage household expenses and keep businesses running. They are repeatedly asked to accept higher taxes, reduced subsidies and difficult economic adjustments. Yet comparable sacrifices from those holding power are rarely visible.
This imbalance raises a fundamental question of fairness. Why should financial discipline be demanded primarily from citizens while influential groups continue enjoying privileges largely insulated from economic hardship? Accountability must extend across civilian institutions, state-owned enterprises and security expenditures. No institution should remain beyond reasonable financial scrutiny.
Pakistan’s strategic achievements, including its nuclear capability, are undoubtedly significant. However, military strength alone cannot guarantee national prosperity. Lasting security also depends on productive industries, competitive exports, reliable institutions and sound economic management. A country cannot indefinitely sustain strategic ambitions without a strong economic foundation.
The Borrowers Platform may provide opportunities for cooperation, shared experience and stronger representation in international financial discussions. Nevertheless, chairing such a forum does not resolve the structural weaknesses within our economy.
For years, successive governments have promised tax reforms, expenditure control, export promotion and restructuring of loss-making public enterprises. Unfortunately, meaningful progress has repeatedly slowed whenever reforms threatened established interests. The consequences are ultimately borne by citizens who had little influence over those decisions.
Pakistan does not lack potential, talent or resources. What it needs is consistency, accountability and leadership prepared to practise the financial discipline it expects from everyone else. Our real achievement will come when Pakistan can borrow to expand opportunities rather than survive another financial crisis. Until that day arrives, the chair may be ours, but so is the debt.
—The writer is an institutional development and governance expert.
