Irresponsible borrowing damaged economy - Press Release issued by Atif Ikram Sheikh.

Islamabad -- January 16, 2023 (PPI-OT)

Following is the text of press release issued by Atif Ikram Sheikh

Quote

Former Vice President of FPCCI Atif Ikram Sheikh on Saturday said almost all the governments of the past borrowed irresponsibly and most of the loans were wasted for political interests instead of ensuring the country's development. Now it has become impossible for Pakistan to repay the loans and the option of borrowing from one country or institution and repaying it to another is being used, he said.

Atif Ikram Sheikh who has also served as Chairman PVMA said that Pakistan has to repay twenty-one billion dollars this year, while a total of seventy billion dollars has to be paid in the next three years, which is very difficult. The only way to repay loans is to increase exports and decrease imports, for which the environment is not conducive. Borrowing will remain the only option unless the country has a current account surplus, he observed.

He said that borrowing has limits also as the credit of 78% of the total debt is the result of policies of a former government. The business leader said that during the last few years, the production of electricity has doubled, but industrial and agricultural production and exports cannot be increased. Wrong...