KARACHI: Pakistan's mounting debt burden is increasingly constraining human development, as a significant portion of public resources is allocated to debt servicing rather than investments in crucial sectors such as education and healthcare, stated Pasban Democratic Party (PDP) Chairman Altaf Shakoor on Sunday. He highlighted that nearly half of the federal budget for FY 2026-27 is earmarked for interest payments and debt servicing, leaving limited resources for addressing the developmental needs of the nation.
According to Pasban Democratic Party, the country's public debt has surged dramatically, exceeding Rs 75 trillion compared to less than Rs 20 trillion a decade ago. This escalation in domestic and external liabilities has led to a situation where a large share of government revenues is consumed by servicing past borrowing. Shakoor emphasized the profound consequences for human development, noting that Pakistan faces persistent challenges in education, healthcare, nutrition, and basic services, compounded by increasing climate-related risks requiring substantial investments in resilience and environmental protection.
Shakoor further underscored the urgency of the situation by pointing to persistent poverty, with nearly 45 percent of the population living below the lower-middle-income poverty line. He stated that every rupee spent on debt servicing is a rupee unavailable for critical investments in the country's future, stressing the need for a fundamental shift in economic policy towards expanding domestic revenue generation and improving public expenditure management.
He advocated for strategic investments in sectors like agriculture, minerals, and renewable energy to reduce reliance on borrowing. Citing international examples from countries like South Korea and Vietnam, Shakoor highlighted the importance of fiscal discipline and economic diversification in reducing debt pressures. He concluded by asserting that sustainable progress relies on stronger revenue generation and a commitment to improving the lives of Pakistan's citizens, moving away from a cycle of debt accumulation towards a future of productivity and self-reliance.