Former Vice President of FPCCI Atif Ikram Sheikh on Sunday said almost all the governments borrowed irresponsibly and most of the loans were wasted for political interests instead of ensuring the country’s development.
Now it has become impossible for Pakistan to repay the loans and the option of borrowing from one country or institution and repaying it to another is being used, he said.
Atif Ikram Sheikh who has also served as Chairman PVMA said that Pakistan has to repay twenty-one billion dollars this year, while a total of seventy billion dollars has to be paid in the next three years, which is very difficult.
The only way to repay loans is to increase exports and decrease imports, for which the environment is not conducive. Borrowing will remain the only option unless the country has a current account surplus, he observed.
He said that borrowing has limits also as the credit of 78% of the total debt is the result of policies of a former government.
The business leader said that during the last few years, the production of electricity has doubled, but industrial and agricultural production and exports cannot be increased.
Wrong policies have transformed the electricity sector into a monster for the country.
He said that privatization is necessary in the current situation but the political parties do not agree on it; foreign investors want better laws and protection which they do not get and no one is willing to pay taxes.
The IMF has asked Pakistan to impose new taxes to increase its revenue but the government is reluctant to put an extra burden on the people.
The ninth review for the release of next tranche has been pending since September, leaving Pakistan desperately reaching out to friendly countries for financing.
