KARACHI: Constant and towering increase in debts, huge increase in energy cost, rise in petroleum prices are the biggest impediments in economic growth of Pakistan and increasing the fiscal deficit on day to day basis, said Ateeq Ur Rehman, economic and financial analyst
Global community, particularly the international financial organizations must offer debt suspension and relief to help developing nations like Pakistan to recover from the crisis triggered by Covid-19 pandemic, he said.
Even the Prime Minister of Pakistan has asked the creditors while virtually addressing special segment of ECOSOC (United Nations Economic and Social Council) to participate in providing debt relief and restructuring to protect people from massive socio–economic fallout of the pandemic.
Debt servicing has become the biggest problem for the government, as it must borrow continuously to pay back the previous debts.
Statistically given numbers are grim, thus reveal that Pakistan is compelled to borrow more money from domestic and foreign sources to pay its bills which include repayment of old loans. “Our maximum revenue is spent on debt servicing. We are always left with no funds for socioeconomic development, education, health, etc,” said Ateeq.
Copyright Business Recorder, 2021