MPs concerned over govt's strategy to control soaring debt.

Byline: Imran Ali Kundi

ISLAMABAD -- The ministry of finance on Friday said that Pakistan's overall debt has surged to 85 percent of the Gross Domestic Product (GDP), which would be brought to 50 percent of the GDP in next five years.

The ministry of finance yesterday informed the parliamentary committee that government is taking measures to reduce the country's debt in next five years. The meeting of the National Assembly Standing Committee on Finance and Revenue was held under the chair of Asad Umar in parliament house. The committee was informed that internal debt would be reduced 66 percent of the GDP and external to 34 percent of the GDP during current fiscal year. The officials informed the committee that government would reduce the commercial borrowing while it would increase the dependence on issuance of bonds in international market. The ministry of finance would take approval of the Debt Management Strategy from the federal cabinet.

However, the committee members said that government's strategy to control the soaring debt is looking unrealistic. Committee chairman said that Pakistan's borrowing from external sources may increase in the coming years due to the insufficient foreign exchange reserves of the country.

Chairman Federal Board of Revenue (FBR) Shabbar Zaidi informed the committee that government had faced tax collection shortfall in the first quarter (July to September) of the current fiscal year mainly due reduction in imports. However, tax collection would increase in the second quarter due to...

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