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Although all past governments of Pakistan had taken foreign loans to meet their requirements, the incumbent Pakistan People's Party-led government has set new records of getting loans during its first three years.
At present, Pakistan owes 59.5 billion dollars to various institutions, and there is little possibility of the government being able to discharge its debt servicing obligations without getting more loans.
When General Musharraf took over in October 1999, toppling the then Prime Minister Nawaz Sharif, Pakistan's foreign debts stood at 37.9 billion dollars.
At the end of June 2007, when Gen Musharraf was still in power, the loans rose to 40.5 billion dollars, which means that foreign debt/liabilities did not register much increase, Daily 'The Nation' reports.
However, the external debt/liabilities stood at 22 billion dollars only till the end of the 80s, which shows that Pakistan's dependence on foreign loans has been going up with the passage of time, despite consistent claims by all governments that they had done miracles to improve the national economy.
The performance of the incumbent government in this sector seems more painful, as not only has it been adding to the burden of foreign loans, it has raised the prices of all utilities manifold during its first three years.
Economists say that accumulating foreign debt has put negative impacts on the country's fiscal stability. Poor debt management poses risks for both the public and private sectors in the form of economic instability, insolvency, debt distress, and fiscal crisis. (ANI)
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PAKISTAN'S FOREIGN DEBT:
1947 to 1955 = Zero because Pakistan had inherited from Government of British India $ 7.6 billion (Equal to $ 600 billion in today's money since undivided India had the world's largest Foreign Exchange Reserves until 1947, after USA) .
That money was owed to Government of India by British Empire. All that money was gone in just 8 years because after 1947 our highly competent, patriotic, honest Moslim brothers had taken over the country. The looting Thieves, our British Masters had been kicked out in 1947. ... But then, since 1955 Pakistan has been living off Charity of Foreign Aid and Loans. A very small price to pay for Freedom of our patriotic great rulers, ... right?
1955 = $ 200 million (1st ever loan from USA)
1989 = $ 22 billion
1999 = $ 37.9 billion
2007 = $ 40.5 billion
2011 (June) = $ 59.9 billion (F.E. Reserves $ 17 billion)
Comparison with Bangladesh:
2011 (June) = $ 24 billion (F.E. Reserves $ 11 billion)
Comparison with India:
2011 (June) = Zero Loans. (F.E. Reserves $ 310 billion)
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