Islamabad, August 19, 2022 (PPI-OT):The Pakistan Economy Watch (PEW) on Friday said the country’s debt has reached 60 trillion rupees or 280 billion dollars which is alarming and unsustainable. Pakistan owes almost $150 billion to foreign countries and international institutions while the remaining debt has been arranged from local sources, it said. Manipulation of data, extensions of the repayment date of loans or loans from international organizations and friendly countries temporarily reduces the pressure on the government but this is not the solution to the problem, said Dr. Murtaza Mughal, President PEW.
A continued increase in debt and liabilities has compromised the development process resulting in widespread poverty, he added. On the one hand, the debts imposed on the country are increasing rapidly, on the other hand, the exports and remittances are decreasing, while the increasing inflation has broken the back of the people, he observed.
He noted that interest rate hike has increased the difficulties of the business community, while the policy of giving tax exemptions to important sectors or charging nominal taxes is also increasing the problems. Dr. Mughal said that after the recent increase in the price of petrol, the Finance Minister is being criticised which is unjustified.
The petroleum price hike is due to the mismanagement of the previous regime which pushed the country to the brink therefore tough decisions were necessary. Dr. Mughal said that it is impossible to save the country without cleaning up the mess left by the former government which requires tough decisions.
The IMF is also watching whether the current government still shows some responsibility or not. In the current situation, when the economy is recovering and the rupee is stabilizing, lashing out at the finance minister for no reason does not help anyone.
For more information, contact:
President,
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad
Tel: +92-51-2510375
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Email: president@pakistaneconomywatch.com
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