KARACHI: The Financial and economic conditions of Pakistan are precarious, landing the country into a deep trouble, where an overwhelming part of tax revenue is consumed in “debt servicing”, said Ateeq ur Rahman, economic & financial analyst.
The three major contributors of external debt, multilateral loans, bilateral loans and commercial Loans are exacerbating and thus bringing a great risk to fiscal framework of the economy, he said.
In such worsening debt characterization the Current Account Deficit remains high and foreign exchange reserves decline continuously. Further, the foreign exchange rates get into pressure by declining the exchange rate and increasing the debt burden.
He added that, eventually the pressure from all their growing demand is to set house in order by asking to control expenditures which continue to be lavish and beyond means. Further, loss-making public sector enterprises continue to bleed the national economy and corruption continues to mount.
There is an urgent need of common consensus on economic growth and ‘economic charter’ among the political leaders of the country; otherwise, it will be very difficult to pay off the huge domestic and external debt. We cannot continue to expect concessions from global lenders or any defer, extension of loans or moratorium of it, he said.
Copyright Business Recorder, 2022
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