Debt burden

From 1947 to 2008: It took us 61 years to accumulate total public debt of Rs6,000 billion. In 1971, every man, woman and child in this country was indebted to the tune of Rs500. In 2008 – when the PPP took over the government – every man, woman and child in this country was indebted to the tune of Rs36,000. We went from Rs500 per capita debt in 1971 to Rs36,000 in 2008.

2008-2013: It took the PPP a mere five years to take us from Rs6,000 billion to Rs16,000 billion. The PPP took us from Rs36,000 per capita debt to Rs88,000 per capita debt in a mere five years.

2013-2018: It took the PML-N a mere five years to take us from Rs16,000 billion to Rs30,000 billion. The PML-N took us from Rs88,000 of per capita debt to Rs144,000 of per capita debt in a mere 5 years. Wait, the best is yet to come.

2018-2020: It has taken the PTI less than two years to take us from Rs30,000 billion to Rs43,000 billion. Imagine, the PTI has taken us from Rs144,000 of per capita debt to Rs195,000 of per capita debt in less than two years. Lo and behold, the Rs43,000 billion public debt does not include the exploding ‘circular debt’ which on its own stands at Rs2,000 billion.

For the record, the PPP borrowed an average of Rs166 billion a month every month of its five-year tenure. The PML-N borrowed an average of Rs235 billion a month every month of its five-year tenure. Please welcome the PTI which has so far been borrowing an average of Rs540 billion a month every month of its 22-month tenure.

The PPP in its five-year term borrowed 23 percent of our total debt outstanding. The PML-N in its five-year term borrowed 33 percent of our total debt outstanding. Lo and behold, the PTI has already borrowed 30 percent of our total debt over the past 22 months. As a percentage of GDP, our debt has gone up from 86 percent in 2018 to 98 percent.

Didn't the PTI establish a ‘Debt Inquiry Commission’ to investigate the increase in public debt from Rs6,000 billion to Rs30,000 billion over a 10-year span (ruled over by the PPP and the PML-N). Who will now investigate the Rs13,000 billion worth of additional debt that has been taken on by the PTI government over in just 22 months?

Where are all these billions and trillions going? Well, the PTI borrowed a colossal Rs7 trillion just to finance its budget deficits. Yes, there’s a bloodbath going on at our Public Sector Enterprises (PSEs) where losses are accumulating like never before in our history. For the record, PSEs have added Rs1.5 trillion to their existing debt of Rs1.4 trillion (when the PTI took over). Imagine: the PM's Inspection Commission “has found almost $2 billion worth of losses annually in the natural gas supply chain…”

What’s the way out? The only way out is reforms but anyone who shows even an intent of reforming the government is asked to leave the government. To be certain, public debt is now growing faster than at any time in our 73-year financial history.

The writer is a columnist based in Islamabad.

Email: farrukh15@hotmail.com Twitter: @saleemfarrukh