Congratulations, Pakistan Has Become the Leader Among Debtor Nations

By Sarang Munir Soomro

Very few countries can claim the distinction of having their own unique identity despite lagging behind in technology, economic development, skills, university education, and healthcare. Pakistan, too, has developed a distinct identity, but unfortunately, it is an identity associated with remaining behind in almost every field that can improve human lives, strengthen the economy, raise educational standards, advance technology, establish a strong position in information technology, and promote industrial development. We have never been among the leading countries in these fields. Instead, our identity has been shaped by an underdeveloped education system, economic devastation, a weak industrial sector, and a deteriorating state of education and healthcare. The area in which we have moved ahead is borrowing money, spending it, and then taking out more loans. Now another such distinction has emerged: after taking a leading position among borrowing nations, Pakistan has also become the head of a group representing debtor countries. According to reports, Pakistan has been appointed chair of the Governing Council of the Borrowers’ Platform, a group of borrowing countries. This development took place during the annual meetings of the World Bank Group and the International Monetary Fund (IMF) in Bangkok, the capital of Thailand. According to information released by Pakistan’s Ministry of Finance on the social media platform X, Finance Minister Senator Muhammad Aurangzeb accepted the responsibility of chairing the Governing Council of the Borrowers’ Platform. He emphasized strengthening debt management, learning from one another’s experiences in implementing reforms, and exploring new ways to secure financial resources for development projects. Pakistan’s finance minister stated that debt should become a means of development rather than an obstacle to it. According to a statement by UN Trade and Development (UNCTAD), 31 developing countries have formally joined this platform so far, while several other countries have also expressed interest in joining it. How much debt does Pakistan owe? According to information attributed to BBC journalist Tanveer Malik, by the end of August 2026, Pakistan’s federal government owed a total of Rs82,953 billion, compared with Rs77,458 billion at the end of August 2025. This total includes both domestic and external debt. External debt is estimated at approximately US$87 billion. According to State Bank of Pakistan figures, external debt includes US$5.2 billion owed to Paris Club member countries, US$43.5 billion owed to international financial institutions, and US$14 billion borrowed from various countries. In addition, Pakistan has raised approximately US$6 billion from international capital markets through Eurobonds, Sukuk, and other financial bonds, while US$6.4 billion is owed in commercial loans. Short-term debt with maturities of less than one year includes US$8.3 billion in commercial loans and US$1 billion owed to international financial institutions. Pakistan’s outstanding borrowing from the IMF amounts to approximately US$11 billion. What is the Borrowers’ Platform? Pakistan’s Finance Minister, Senator Muhammad Aurangzeb, is now chair of the Governing Council of the Borrowers’ Platform. Addressing a meeting of the platform, he stated that borrowing could help improve development projects, strengthen the economy, and promote social welfare. There is no doubt that developing countries can improve their circumstances by borrowing, as Japan, the United States, India, and hundreds of other countries have done. However, the question is whether Pakistan itself has used borrowed money in this way. In Pakistan, IMF loans have become associated with severe economic hardship for the public. Even today, questions remain about how the loans obtained by Pakistan have been used. What is clear, however, is that ordinary citizens have been paying a heavy price. Through electricity bills, gas bills, and thousands of taxes and charges, the burden of repaying IMF-related debt ultimately falls on the public, yet the loans obtained from the IMF have not delivered the tangible benefits that people expected. The question we must ask is this: if our rulers continue to advance from one borrowing milestone to another, and Pakistan’s finance minister has now assumed a leading position in a platform representing borrowing countries, what will happen to the genuine achievements that matter to the country’s development and directly affect people’s lives? We must remember that Pakistan lags behind many countries in several important areas, particularly education, healthcare, poverty reduction, science, technology, industry, employment, and living standards. More than 25 million children in Pakistan are still out of school, while many children struggle to read and understand a simple written passage even by the age of ten. Girls’ education, shortages of teachers, and inadequate basic facilities in educational institutions remain major challenges. The healthcare sector faces serious problems, including maternal and child health concerns, malnutrition, inadequate hospital facilities, and the high cost of medical treatment. Approximately 40 percent of children under the age of five suffer from impaired growth associated with malnutrition. According to the United Nations Human Development Report, Pakistan ranks 168th among 193 countries, demonstrating that the country still has a long way to go in education, healthcare, and people’s incomes. Poverty and unemployment are also major challenges. Inflation has reduced the purchasing power of ordinary citizens, making it increasingly difficult for many families to afford food, housing, education, and medical treatment. A large number of young people are searching for suitable employment, but the country is not generating enough jobs to meet the needs of its growing population. Industrial development is also progressing at an unsatisfactory pace. High electricity prices, rising business costs, policy uncertainty, and a lack of investment are creating difficulties for many industries. Pakistan needs to make greater advances in modern science, research, innovation, and emerging technologies. Although opportunities exist in computing, digital communications, and software development, the country must invest more in quality education, technical training, and research to take full advantage of them. Creating suitable educational and employment opportunities for women is equally important because when a significant proportion of the population cannot participate fully in economic activities, growth in national productivity and income remains limited. Shortages of clean drinking water, inadequate sanitation, electricity supply problems, floods, extreme heat, and the effects of climate change also damage people’s lives and agricultural production. Pakistan’s development challenges are not simply a matter of having too much or too little borrowing. Other major obstacles include insufficient spending on education, healthcare, employment, industry, agriculture, research, and public services; poor management of resources; and a lack of continuity in economic policies. If the country prioritizes education and healthcare, ensures that children can attend school, creates employment opportunities for young people, supports industry and agriculture, enables women to participate in economic activities, controls corruption, and uses public resources transparently for the welfare of citizens, Pakistan’s prospects for development could improve significantly. The true development of a country cannot be measured merely by the number of buildings and roads it constructs or by the amount of money it borrows. It must also be measured by how educated, healthy, prosperous, secure, and gainfully employed its people are and by how well their basic needs are met. Therefore, if Pakistan is to achieve sustainable development, its rulers must prioritize education, healthcare, employment, and public prosperity. National resources must be directed towards sectors that bring genuine improvements to people’s lives and lay a strong foundation for future generations. Compared with developed countries, Pakistan continues to lag behind in university education, technology, industry, healthcare facilities, investment, road infrastructure, business development, and several other areas of the economy. According to the article’s cited figures for 2026, Pakistan ranks 95th among 139 countries in innovation and technological development, 111th in school education, and 127th in university education. In the global assessment of infrastructure, including roads, electricity, and other essential facilities, Pakistan ranks 124th. It ranks 105th in investment and 123rd in the business environment. Among Pakistan’s universities, Quaid-i-Azam University and the National University of Sciences and Technology are regarded as important institutions of higher education. However, according to the article, no Pakistani university has managed to enter the world’s top 350 universities in international rankings. The healthcare sector also faces major challenges. Many areas lack sufficient hospitals, doctors, medicines, modern medical equipment, and affordable treatment. Poor and middle-income families are particularly affected. Industrial development remains below the desired level. High electricity tariffs, production costs, insufficient investment, and uncertainty surrounding business policies create serious difficulties for industries. Pakistan needs to invest more in new technologies, scientific research, and innovation if it is to compete effectively with other countries. The country must also attract more domestic and foreign investment by ensuring political and economic stability, upholding the rule of law, and creating a more favourable business environment. Although several major infrastructure projects have been completed, many areas still suffer from poor roads, water shortages, electricity problems, and inadequate urban facilities. Pakistan’s economy is growing, but not rapidly enough to generate sufficient employment opportunities for its expanding population. Every year, millions of young people enter the job market in search of work. The fundamental question is: where will the rulers, who seem increasingly preoccupied with borrowing, ultimately lead the people of Pakistan? For generations, ordinary citizens have borne the burden of repaying loans obtained from the IMF and other lenders. Yet instead of declining, the country’s debt continues to rise and has reached historically high levels. Sarang Munir Soomro