Honorable Minister, Mr Ahsan Iqbal,
WHILE addressing the Annual Plan Coordination Committee (APCC) meeting on June 1, 2026, you rightly and unequivocally emphasized that “Pakistan’s economy should rely not on foreign loans but on its own resources.” This observation is both timely and pertinent, as it is widely recognized that excessive dependence on external borrowing can seriously undermine a nation’s prospects for sustainable long-term growth and development, particularly when debt levels become unmanageable or are not prudently managed.
As you are aware, Pakistan’s total external debt and liabilities currently stand at approximately $138 billion. By mid-2026, the country finds itself grappling with a formidable debt burden, with debt servicing absorbing a substantial share of federal revenues. For the fiscal year 2025–26, debt servicing expenditures are projected to range between PKR 8.2 trillion and PKR 8.7 trillion, representing nearly half of the federal budget. This is far from an encouraging state of affairs; rather, it is a matter of grave concern that warrants urgent and sustained attention.
“The country’s enormous and continuously rising external debt, coupled with the massive annual burden of debt servicing, is severely constraining Pakistan’s capacity to achieve sustained economic growth and development. There is an urgent need to reduce dependence on foreign borrowing if Pakistan is to attain lasting economic stability and bring meaningful progress and prosperity to its people. “ This vital national objective can be achieved by relying increasingly on self-generated resources through a substantial expansion of exports and a reduction in imports.
Your invaluable observation that “Pakistan’s future hinges on taking its exports to record levels over the next ten years” is both timely and insightful. As you rightly noted, our development budget should be strategically utilized to strengthen export-oriented sectors, secure a meaningful place for Pakistan in global markets, enhance agricultural productivity to ensure food security and enable the country to emerge as a self-reliant member of the international community.
Allow me to add that, alongside becoming a truly export-driven economy, Pakistan must also make a determined effort to curtail the import of non-essential and luxury goods. Such a policy would conserve precious foreign exchange reserves, allowing the country to better finance the import of indispensable commodities such as petroleum products, diesel and liquefied natural gas (LNG). In conclusion, I consider it highly important to underscore that foreign loans not only impose a substantial financial burden on the national exchequer—since they must be repaid along with hefty interest payments—but also tend to diminish a country’s economic autonomy. Borrowing nations are often compelled to comply with stringent conditions and policy prescriptions imposed by international lending institutions. Pakistan’s long-standing engagement with the International Monetary Fund (IMF) serves as a stark reminder of this reality.
The most effective and sustainable way to break free from this challenging cycle is precisely what you have advocated: transforming Pakistan into a truly export-driven economy. There is an urgent need for the country to achieve a dramatic increase in exports, strengthen its capacity to generate indigenous resources and progressively reduce its reliance on both external and domestic borrowing. Only through such a strategy can Pakistan secure lasting economic stability, self-reliance and prosperity. May Pakistan continue to grow and prosper in the years ahead. Long Live Pakistan!
—The writer is a columnist and analyst based in Islamabad -Pakistan.
