Karachi: Expressing grave concern over rising loans of the country, Pasban Democratic Party (PDP) Chairman Altaf Shakoor here Monday said that the nation has to take efforts to break free from the debt trap as reports suggest that per person loan is now Rs 320000.
He said every Pakistani is indebted due to the country’s high national debt. Pakistan’s debt has been increasing for years, and the average citizen owes a significant amount. As of September 2024, Pakistan’s total debt was PKR 71.24 trillion, which is 67.2% of the country’s GDP. This includes domestic debt of PKR 47.16 trillion and external debt of PKR 33.062 trillion.
He said in June 2023, Pakistan’s domestic debt was PKR 38,810 billion. However,
In September 2024, our external debt was USD 133.5 billion. He said in June 2023, Pakistan’s debt-to-GDP ratio was 74.8%. However, in September 2024, the debt-to-GDP ratio was 65.7%.
He said that research suggests that there are negative consequences associated with high levels of debt, including adverse effects on economic growth, altered expectations, increased uncertainty, changes in sovereign yield spreads, and real interest rates. Ultimately, these factors can lead to reduced levels of private investment when a country’s revenue growth is unsustainable. Regardless of whether a country is developed or developing, a high debt-to-GDP ratio increases the likelihood of default.
Altaf Shakoor said the ruling elite is bent to take more loans instead of now ending this deadly debts. He said the parliament should pass a law that the country wouldn’t take any new foreign loans for next ten years. He said debt trap is a death trap for any nation. He said the SIFC is taking efforts to salvage economy but the external debt is offsetting these efforts.
He said our country will spend around Rs 9.775 trillion on debt servicing including interest payments and retiring its principal amounts during the next financial year 2024-25 which is 51.8 percent of total budget outlay of Rs 18.877 trillion. He said if a nation pays 52 percent of its budget on loans and interest there could not be any better name for it than economic slavery. He said untiring efforts should be taken to end this economic slavery.
Altaf Shakoor said agriculture is the only sector that could break the chain of this slavery. He said we have ample land, abundant sunshine and huge sweet and saline water reservoirs. He said new dams, canals, solar electricity, desalination and saline water crops would make us self sufficient. He asked the chief of army staff and the prime minister to make a new high-powered body to boost agriculture on the lines of SIFC. He said by promoting agriculture, irrigation, solar power, desalination we could soon end our poverty and deprivation.
