Curse of debt on Pakistan.

Byline: AAMIR KHALIL-Via email

Pakistan has been struggling with a heavy debt load for many years. To fund its development initiatives, fill its budgetary gaps and maintain its balance of payments, the nation's economy has relied largely on loans and aid from abroad. A number of causes, including as poor revenue collection, corruption, political unpredictability and poor economic management, have contributed to escalation of debt problem.

As of 2021, Pakistan's external debt stood at over $115 billion, or about 38% of its GDP, after gradually increasing. The nation's duties to service its debt have also grown, and in 2020 it spent close to $12 billion on debt payments, or roughly 30% of its export revenues.

The economic and societal effects of the debt burden on Pakistan are numerous. So first of all, govt's ability to spend on social services, education, healthcare and infrastructure development is severely constrained by debt burden.

Second, the debt payment commitments divert precious foreign exchange reserves from more profitable investment like the importation of raw material, machinery and technology. Thirdly, the...