LAHORE: Pakistan Industrial and Traders Association Front (PIAF) Chairman, Mian Nauman Kabir has called for check on government expenditure and high cost of debt servicing amid rise in the budget deficit to around Rs1.4 trillion.
In a joint statement with Vice Chairman, Javed Siddiqi, the PIAF Chairman claimed that the total government expenditure has increased by 7-percent to Rs3.2 trillion during the July-Dec 2021 mainly due to high cost of debt servicing, which has jumped by more than 15 percent in first half of FY21.
"The budget deficit is going up despite the government claim of tight control over expenditures, while the only main head of expenditure that remains out of control is the debt servicing cost that jumped by 15 percent to nearly Rs1.5 trillion," he said.
The PIAF Chairman maintained that the failure to reform the tax system and increase revenue collection is a major factor behind heavy domestic and foreign borrowings by the government.
PIAF Vice Chairman, Javed Siddiqi stated that Pakistan's fiscal policy continued to focus primarily on macroeconomic stabilization, in response to the financial crisis, instead of putting more emphasis on reforms to foster long-term growth through industrialization by adopting advanced technology.
Copyright Business Recorder, 2021