Pakistan Muslim League-Nawaz (PML-N) prominent leader Ahsan Iqbal has voiced worries over Pakistan’s growing debt. He stated that Pakistan has to pay back its current debts with Rs. 7,300 billion at a speech in Narowal.
Iqbal attacked the economic policies of the present administration. He underlined how critical it is to boost the country’s economy. Iqbal expressed concern over Pakistan’s growing debt and excessive reliance on loans.
- He also said that it is not a good idea to borrow money on a regular basis. Iqbal’s remarks reveal his viewpoint on the state of Pakistan’s economy.
- Moreover, detractors said that the previous administration failed to create enough jobs and did not use loans wisely.
- They said that Pakistan’s growing debt problem was made worse by public financial monitoring flaws and malfeasance.
- Insufficient accountability permitted excessive project expenditures.
According to Iqbal’s claim, debt servicing now takes up the whole budget of Pakistan instead of going towards development projects. He cautioned that taking on debt continuously is unsustainable.
Many LinkedIn commenters agreed, pointing out that the mounting debt load should be the fault of earlier governments. Furthermore, the State Bank of Pakistan’s statistics indicate a notable increase in Pakistan’s growing debt. It also includes the public debt throughout the last ten years. The rising trend in debt is seen in the following table:
Total Public Debt Between 2010-2022
- Year – Total public debt (Rs. billions) – Ratio to GDP
- 2010 – 11,724 – 54.08%
- 2015 – 16,009 – 62.60%
- 2020 – 32,339 – 87.20%
- 2022 – 44,379 – 83.50%
Experts suggest budgetary restraint, increasing tax revenue, and luring in foreign capital to address the problem. Experts fear that if severe economic reforms are not swiftly enacted, they will have a detrimental effect on stability and growth due to a significant debt issue. To stabilise state finances, debt relief and restructuring must be implemented immediately.
Conclusion – Pakistan’s Growing Debt
In conclusion, Pakistan’s debt load is increasing as a result of unsustainable borrowing and poor governance. Iqbal and critics have pointed out that previous regimes did not use loans wisely.
Delays in taking remedial action might significantly obstruct the country’s growth. It is imperative that immediate action be taken to reduce needless spending and reliance on unsustainable borrowing.
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Reference
Azad, A. R. (2024, June 17). Local, foreign loans critical to meeting financial needs: Ahsan. Brecorder.
