Daily Times

The Pakistan Tehreek-i-Insaf government must come up with an explanation on the reports released by the Ministry of Economic Affairs that the country has received $23.6 billion foreign loan since the inception of the government back in 2018. Why so much loans when one can hardly see any landmark project in the offing by utilizing these loans? If the government is taking loans only for the balance of payments, this will not benefit the country in the long run as it will eventually lead to economic collapse. Another noticeable thing is the almost 45 per cent ($ 4.5 billion) hike in the foreign loan inflows from July 2020 to November as compared to the corresponding period in the last fiscal year. These are not unusual numbers as given the pandemic onslaught and the world over economic slow growth, the government had to rely on foreign loans and assistance. There are reports that the country just returned a $1 billion loan to Saudi Arabia, which it had taken last year, after taking a loan from some Chinese commercial banks. According to the ministry, during July-October of 2020 total servicing of external public debt was $2.45 billion against the annual repayment estimates of $10.363 billion for the entire fiscal year. The government could repay $2.035 billion as principal sum and $415 million as interest on the outstanding stock of external public debt. The government has been trying to diminish the impact of the circumstances by cutting down development funds and taking up several austerity measures. The government resumed economic activities after a lull of three months when the provincial government imposed lockdown while aviation and shipping services remained at a halt in the world.  The early resumption of the economic activities has changed the commerce outlook to some extent. A record increase in remittance and a gradual increase in exports are a welcome sign.

The government needs to focus on the economy as the priority matter in the next two years. Since its inception, it has been focusing on day-to-day firefighting, instead of coming up with some futuristic plans.  True, it took over a difficult government where foreign exchange constraints forced it to borrow from multiple sources to fund development projects and repay foreign public debts. It should, however, show the countrymen a clear roadmap now. *