Debt on each Pakistani is over Rs1 lac now

Ansar Abbasi

Every Pakistani is today burdened with the debt and liabilities of over Rs101,338 as against Rs90,772 in June last year when the PML-N government took over.

It means each Pakistani is overburdened by at least Rs10,000 during the last 14 months of the present regime.The debt on each Pakistani was Rs80,894 in October 2012 whereas it was only Rs37,170 in early 2008.

According to the State Bank of Pakistan, the total debts and liabilities (both internal and external) reached Rs18,241 billion in June 2014. These figures were Rs16,339 billion in June 2013, which means during the last 12 months of the present regime almost Rs1900 billion has been added as debts and liabilities.

Since June 2008 the total debts and liabilities have more than doubled the amount accumulated during the first 60 years of Pakistan’s independence. The debt/liabilities burden added during the last PPP tenure was almost Rs10,000 billion. It was Rs6,691 billion till June 2008.

In view of the latest figures as shown by the State Bank of Pakistan, every Pakistani is presently burdened with the debt and liabilities of Rs101,338 as against Rs37,170 in early 2008, an addition of Rs64,168 during the last six-seven years.

In a country in which according to the government’s own reports poverty has risen and 58 percent of the population faces food insecurity, this additional burden means more miseries for the future generations of Pakistan.

Sector-wise breakdown of the total debt and liabilities (Rs18241 billion) as per the State Bank of Pakistan is, government domestic debt Rs10907 billion; government external debt Rs4,791 billion; debt from IMF Rs298 billion; external liabilities Rs324 billion; private sector external debt Rs486 billion; public sector enterprises external debt Rs205 billion; public sector enterprises domestic debt Rs366 billion and commodity operations Rs492 billion.

According to the statistical supplement of the State Bank of Pakistan’s Annual Report 2009-2010, the total debts and liabilities of the last 60 years till June 2008 were Rs6,691 billion, meaning thereby what successive governments in Pakistan could not accumulate in six decades have been accumulated in last six years.

Experts believe corruption, misrule, massive tax evasion and poor economic policies have burdened the nation with such an alarming rise in the total debts and liabilities.The State Bank figure shows that the major burden is not external but domestic debt alone has crossed the figure of Rs10,000 billion. In the federal budget for the year 2012-2013, the federal government had allocated Rs926 billion for payment of interest on debt. This figure of interest allocation was over Rs1100 billion in 2013-2014 whereas it reached Rs1326 billion in the current budget.

Because of huge government borrowing from the banks, it is said, the pre-tax profits of the banking sector have greatly risen in the recent years.The banks instead of performing their real job of advancing loans to the private sector, businessmen etc for growth of economy, are giving maximum loans to the government where income from interest is guaranteed and no risk is involved.