Every Pakistani currently bears a substantial burden of debt, amounting to two hundred and eighty-eight thousand rupees per person, according to former Punjab Finance Minister Dr. Ayesha Ghos Pasha.
Speaking at the Asma Jahangir Conference in Lahore, Dr. Ghos highlighted the alarming trend of escalating expenses coupled with diminishing revenues, painting a grim picture of the nation’s financial health. Notably, Pakistan’s indebtedness has surged in recent years, with loans exceeding previous records by twice the amount in the past twelve years.
Of particular concern is the staggering sixty billion dollars owed to the International Monetary Fund (IMF), which must be repaid over the next three years. Dr. Ghos stressed the imperative to bolster income generation through increased exports while emphasizing the crucial role of provincial governments in providing public relief.
She underscored the urgency of empowering provinces in accordance with the provisions of the 18th Amendment to address systemic inefficiencies. Similarly, former Governor of the State Bank, Shahid Hafeez Kardar, echoed concerns over Pakistan’s precarious financial situation, attributing the mounting debt crisis to decades of fiscal mismanagement.
With the rupee under immense pressure and expenditures surpassing revenues, Kardar highlighted rampant smuggling and inefficiencies in government projects as exacerbating factors.
