Debt burden increased more than three times since 2008

Each Pakistani now owes Rs124,000

ISLAMABAD: Pakistan’s internal and external debt and liabilities added during the last three and half years are almost equal to what the country had borrowed in almost 60 years  of its independence i.e. from 1947 to 2007. State Bank statistics show a phenomenal rise in the country’s debt and liabilities during the last ten years.

The State Bank figures relating to the total public debts and liabilities by end June 2013 were Rs 16,228 billion, which by this month (Nov 2016) has risen to Rs 22,461 billion. Each Pakistani till September 2013 was burdened with the debt and liabilities of Rs 96,422 but now this burden on each Pakistani has increased to almost Rs 124,000.

In early 2008 each Pakistani was burdened with Rs37,172. This figure had risen to Rs 80,000 in 2012. Pakistan’s total debt and liabilities were Rs 6,691 billion in 2007. In five years from 2008 to 2013 the total debts and liabilities were more than double the total of such amounts accumulated during the first 60 years of Pakistan’s independence.

The debt/liabilities burden added during the PPP’s five years tenure was almost Rs 9,000 billion.  The figures of total debt/liabilities till June 2008 were Rs 6,691. During the last three and half years almost Rs 6000 billion were added.

In a country in which according to official reports poverty has risen and over 50 percent of the population faces food insecurity, this additional burden means more miseries for the future generations of Pakistan.

Although the international financial institutions and rating agencies talk positive about economic gains, the phenomenal increase in the total debts and liabilities is really alarming. Many believe that the Pakistani political leadership needs to sit together to meet the economic challenges badly hurting the country and its people. It is said that without any unanimous strategy, backed by all political parties, neither the poor people would get any relief nor would the country effectively face the economic challenges.

Besides showing zero tolerance towards corruption, the political leadership from all different shades would have to agree to uphold the principle of good governance.  It is said that the politicians are required to lead from the front by bringing in all their wealth from foreign countries and offshore accounts. 

Similarly to improve the revenues and avoid country’s dependence on foreign aid and loan, the politicians and parliamentarians would have to pay their taxes honestly so that the people should also follow them in this respect.