Borrowing money for purpose that generates employment or economic activity, which helps to repay loans, is not wrong
ISLAMABAD: Borrowing money for the purpose that generates employment or economic activity, which helps to repay loans, is not wrong. Similarly, borrowing for projects of welfare and betterment, provided the economy has the capacity to repay, is not wrong. Such use of borrowed money works for the improvement of the life of the common people and strengthening of the economy directly or indirectly. However, borrowing money to construct palatial residential and official buildings, superficial projects such as beautification of select cities or areas, or superfluous projects such as hoisting largest flag is not good. Money spent on such things goes to waste and adds unnecessarily to the national debt creating pressure on the economy while opening the floodgates of inflation on the public. In the past, our rulers have always wasted most of the borrowed funds on superfluous or failed projects and have driven the country into a debt trap, which we are now finding impossible to get out of. They still don’t seem to have learnt anything and keep on playing the blame game for mortgaging our future.
Raja Shafaatullah
Published in The Express Tribune, November 17th, 2019.
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