PPP voices concern over country’s soaring debt

ISLAMABAD: The PPP Vice President Senator Sherry Rehman on Tuesday voiced concern over the country’s alarming debt accumulation under this government and its refusal to hold itself accountable.

“This is not the way democratic institutions work, neither with transparency or economic prudence. Reports reveal that Pakistan’s total debt and liabilities have reached Rs22.5 trillion by the end of the last fiscal year. This figure shows a net increase of Rs2.6 trillion in one year,” she said while commenting on the reports of debt pileup.

Sherry Rehman said the economic forecasts and reports all point towards Pakistan’s dangerous downward economic spiral which suggests that we are headed towards an economic catastrophe if the problems are not mitigated as soon as possible.

The senator added, “Pakistan has been borrowing around Rs2 trillion annually. This is not a sustainable practice particularly when the government’s total domestic and foreign borrowings have already amounted to a staggering $55 billion.”

“The PM spent millions on his latest London trip while his government’s ruinous economic policies only continue to pile up the country’s debt. How can this government explain this to the average Pakistani who earns Rs12,000 per month? They will lose confidence in democracy and only see it as extractive,” stressed the PPP leader.

The senator also expressed concern over the government’s economic policies that put extra financial burden on the public. “Recently, the ECC extended the power sector debt for two more years. As a result, consumers would end up paying for the interests which will continue to reflect on their electricity bills. In 2015-2016 they have already collected Rs29.3 billion from the consumers,” she said.

“This government takes pride in its supposed expertise in economic management but in the past three years, the country’s external debt rose by 27 percent, exports declined by 35 percent, FDI is down by 53 percent in July to August compared to last year and the rate of debt increased by approximately 37.5 percent,” she added.

Sherry said falling exports, FDI, remittances and circular debt in key industries and the piling up of debt, both foreign and domestic, have been persistent economic issues with serious repercussions.