The federal government was unable to fulfill its promises of breaking begging bowl and take the country to the next level where it can generate revenues internally with minimal interference of external borrowing; the Sharif-led Federal government took loans worth $19.66 billion during the tenure from June 2013 to June 2017, reported by Dunya Today.
The loans were borrowed from 10 different foreign financial institutions. As per the statistics, Pakistan borrowed $6.3 billion from International Monetary Fund (IMF) for 13 years period, the country borrowed $4.10 billion from Asian Development Bank (ADB) for 20 years period and borrowed $4.96 billion from International Development Association for the period of 26 years.
As far as internal revenue generation is concerned, the telecom sector has contributed a lot by adding Rs198.74 in the national exchequer in form of various taxes. Foreign Direct Investment (FDI) contributed $14.28 billion during the previous four-year period.
Borrowing hefty amounts of money from external sources and increase your spending is not a long-term solution. The federal government should focus more on internal revenue generation, FDI, industrialization rather than borrowing a huge sum of money for decades and putting the country in a situation where repaying the loans becomes difficult.
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