ICCI concerned over rising external debt

ICCI President said the previous government had resorted to heavy borrowing to meet current expenditures

ISLAMABAD: The Islamabad Chamber of Commerce and Industry (ICCI) has expressed concern over Pakistan’s rising external debt and liabilities that have soared 50% to a record high of $91.8 billion by the end of March 2018, as per SBP’s latest report. They urged the government to take measures to reduce the country’s dependence on rising foreign debt as it would create problems for the economy.

ICCI President Sheikh Amir Waheed said the previous government had resorted to heavy borrowing to meet current expenditures. It was expected that the current government would curb this unhealthy trend by devising a new strategy. However, starting from July 2013, with every passing year, the quantum of external debt kept growing due to the government’s inability to implement policies that could have ensured sufficient non-debt creating inflows like FDI and exports promotion. He cautioned that if this trend was not curbed immediately, the external debt would soon touch $100 billion that would create grave challenges for the economy.

Published in The Express Tribune, May 20^th, 2018.

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