ISLAMABAD -Former Finance Minister Dr Hafiz Pasha on Wednesday stated that Pakistan is said to be in debt trap and incumbent government had signed/ agreed loans agreements worth of over $52 billion for next five to ten years including $32 billion Chinese investment, what he termed a ‘loan’.
“The government has signed/agreed loan agreements worth of $52 billion from different sources including $32 billion from China, $11 billion from World Bank, $6.64 billion from IMF and $2 billion from Eurobonds”, said Dr Hafiz Pasha, former Finance and Minister and Managing Director of Institute of Policy Reforms (IPR), while addressing a function. This is too much, which is not acceptable and our next generations would face the dire consequences of it, he added.
Presenting the budget recommendations of the Institute of Policy Reforms, Dr Pasha said that Pakistan’s entire revenue collection consumed in only two heads i.e. interest payment and security expenditures every year. He suggested that government should eliminate tax exemptions worth of Rs 200 billion in the upcoming budget 2014-15 majority of income tax concessions. Giving details, Dr Pasha said that government should withdraw income tax concessions worth of Rs 110 billion, Rs 40 billion of custom duties and Rs 50 billion from general sales tax.
Re: Govt signs over $52b loans for next ten years: Pasha
wait for the response.... how glorious these mega billion $$$ are, how shiny Pakistan will be after ten years, though it may not shine as much as NS's tind.
Re: Govt signs over $52b loans for next ten years: Pasha
If i recall that debt is the IMF and World bank which constitutes 10 billion dollars roughly. Would you prefer we not get money from the IMF or World Bank?
Re: Govt signs over $52b loans for next ten years: Pasha
Why was investment termed a loan is my question? 32 billion dollars in investment and Dr. Pasha calls it a loan. Why?
as long as Pasha is not part of it, anything coming in Pakistan is loan, even the remittances shall be called loan ( as per Pasha's new finance directory)
Re: Govt signs over $52b loans for next ten years: Pasha
Even the almost $18 billion worth of loans from IMF and World Bank is a* lot* of money. It has to be paid back too, of course. So why is so much money needed and on what it will it be spent? If the loans are going to fund--or the government is taking loans because it is unable to generate sufficient revenue on its own for necessary expenses all the while it is using its money on-- gimmicks like "laptop programs" or metro buses for Rawalpindi etc. then Pakistan could do without so much unnecessary debt. There is some wisdom, after all, in living within one's means.
