Karachi: Expressing grave concern over the rising national debt, Pasban Democratic Party (PDP) Chairman Altaf Shakoor on Monday emphasized the urgent need for Pakistan to break free from its debt trap. Reports indicate that the per capita debt now stands at Rs 320,000.
According to a statement by Pasban Democratic Party, Shakoor highlighted the growing debt burden, noting that as of September 2024, Pakistan’s total debt had reached PKR 71.24 trillion, equivalent to 67.2% of the country’s GDP. This comprises a domestic debt of PKR 47.16 trillion and an external debt of PKR 33.062 trillion.
Shakoor pointed out the negative consequences of high debt levels, which can hinder economic growth and increase uncertainty. The debt-to-GDP ratio, which stood at 74.8% in June 2023, decreased to 65.7% by September 2024. However, he warned that the high debt ratio still poses a threat to the nation’s financial stability.
Criticizing the ruling elite’s approach to managing the debt crisis, Shakoor urged the parliament to pass legislation prohibiting new foreign loans for the next decade. He described the current debt situation as akin to economic slavery, with 51.8% of the national budget for the financial year 2024-25 allocated to debt servicing.
Shakoor proposed leveraging Pakistan’s agricultural resources to alleviate the debt burden. He suggested initiatives such as constructing new dams, expanding irrigation systems, and investing in solar power and desalination projects. He called on the chief of army staff and the prime minister to establish a new body to promote agricultural development, hoping such measures could lead to economic self-sufficiency and reduced poverty.