It is no surprise that the national debt is accumulating. It is destined to be so, as we as a nation and a responsible government have done little to address the menace of living on borrowed money. With growth stagnating and the rupee undergoing a roller-coaster of disaster, Pakistan’s external repayment obligations have surmounted above the Himalayas. Horrifying statistics, revealed by the government itself, say that the incumbent 13-party coalition during its first 11 months of tumultuous tenure borrowed Rs33.89 billion on a daily basis. In other words, it is equivalent to a loan of Rs1.40 billion per hour. This simply confirms that we are resigned to ad hocism, and nothing has been done to reorient our national life by opting for even the first step of self-reliance.
Figures released by the State Bank confirm that the federal government’s total debt increased by Rs11.13 trillion to Rs58.962 trillion during FY23. This is almost a 23% rise. Likewise, external debt rose to Rs21.908 trillion, during the same period, primarily owing to mindless devaluation of fiat and the rampage that the greenback had in our midst. Last but not least, the government failed to attain revenue collection targets, and exports took a nosedive. Thus, the volume of loans increased by a staggering 40% on the statistical board, leaving the beleaguered administration in shock and awe.
Despite a standby loan injection of $1.2 billion from the IMF, as it agreed to dole out $3 billion in nine months as a special consideration, no positive vibes are seen in the long run. The budget is straight-jacket packed with Rs7.302 trillion going on debt servicing, out of a total outlay of Rs14.5 trillion, and the masses left on the hallucination of mini-budgets that only lead to price-spiraling.
No effective austerity measures were taken to cut down on non-productive expenses. It is common observation that perks and privileges of serving and retired bureaucratic machinery, and the who’s who in the corridors of power continue to have a field day on the hard-earned money of taxpayers. In lieu, the masses were subjected to 38% inflation and hopelessness in social mobility. This paradigm is suicidal, and will not sail us out of debt-trap.
Published in The Express Tribune, July 17th, 2023.
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