ISLAMABAD: The United Nations Development Programme (UNDP) has said that Pakistan is currently facing a challenging economic situation with debt in "excess of Rs 50 trillion ($250 billion)’’.
The Ministry of Economic Affairs Division (EAD) in collaboration with the UNDP have organised a high-level policy seminar titled “global economic situation and effective debt management strategies” on June 21, 2022 in Islamabad to discuss solution to debt management.
The seminar’s strategic objectives will include deliberation on the existing global and regional economic scenarios having relevance to Pakistan with a focus on current debt situation and challenges posed by it, propose strategic recommendations and sectoral solutions for effective debt management to maintain financial stability and insulate Pakistan’s economy from external shocks.
The UNDP, in its brief for the seminar, has stated that Pakistan, the world’s fifth-most populous country, is a lower middle-income country aspiring to be among the world’s ten largest economies by 2047. However, Pakistan is currently faced with a challenging economic situation with a debt in excess of Rs 50 trillion ($250 billion).
On the macroeconomic front, Pakistan is facing daunting challenges, which include: (i) rising current account deficit, fiscal deficit, and trade imbalance; (ii) depleting foreign exchange reserves resulting in plunging currency, soaring inflation coupled with high interest rates;(iii) narrow tax base resulting in low tax to-GDP ratio; and (iv) elevated energy prices and subsidies denting the national exchequer.
Led by the Government of Pakistan, the seminar will be addressed by senior government representatives, select senior national economists / subject matter experts, and representatives of Pakistan’s Development Partners, including multilateral and bilateral donors and UN agencies.
Copyright Business Recorder, 2022
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