This apropos a Business Recorder op-ed "The debt debate" carried by the newspaper on Friday. The authors, Huzaima Bukhari and Dr Ikramul Haq, have shown their customary belligerence towards the government. According to them, "Whatever our worthy Finance Minister, Ishaq Dar, may claim, the fact remains that Pakistan is caught in a deadly debt trap." Why have these two honourable writers lost sight of the fact that the entire amount of debt does not mature on the same day.
Rather, it becomes due over a period of time which enables the government to plan its schedule of repaying or rolling over existing debt and go for a new period which is decided taking into account the prevailing cost of borrowing, prospects of rate for coming periods and matching it with tax collection pattern.
The accumulation of debt will certainly lead to establishment of infrastructure, increased economic growth and creation of new job opportunities.
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