‘Debt servicing eating out of current reserves’

Very little left for development, says National Assembly panel chairman

LAHORE: National Assembly Standing Committee for Finance Chairman Qaiser Ahmed Sheikh said debt servicing is consuming a major share of the country’s current revenues.

Speaking at the CFO summit organised by the Institute of Cost and Management Accountants of Pakistan (ICMAP), Sheikh said, “Pakistan’s current loan is around 63% of its GDP, when it should be at 60% and every percentage costs us an additional Rs20-25 billion.”



Sheikh said that even though a lot of funds are arranged through deficit financing, very little is left for development and revenue expenditures. The government is aware of the state of affairs and is taking measures to put the financial and fiscal house in order, he said.

“Unfortunately, Pakistan is focused on a few export items like textiles and rice and we need to broaden the scope.”

Provincial Finance Minister Dr. Ayesha Ghaus Pasha said that urban clusters can serve as engines of economic growth.

Meanwhile, South Asian Federation of Accountants (SAFA) Former President Muhammad Rafi and ICMA Pakistan former chief Muhammad Ashraf Bawany presented a paper that stated internal complexity is the most significant challenge CFOs of large companies are facing.



The top four issues cited by the finance executives are dealing with legacy systems and environments (55%), managing the complex need of all stakeholders (48%), new and complex business risks (46%), and supporting increasingly complex operating models (28%).

Published in The Express Tribune, March 20^th, 2016.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.