The government continues to fund development projects with the aid of foreign loans. In the year 2016-17, Pakistan obtained $10.6 billion loans from various countries.
The target of taking money from foreign countries was $8 billion for the previous year which increased to $10.6 billion. The government has taken huge loans to repay the previous ones and for investments in the ongoing projects. Till May, Pakistan was in debt of $58 billion, which is just the external debt. The internal debt is of Rs12,956 billion. $4.8 billion was spending by the government on interest payments and loans.
The cherry on the cake is that the government won’t stop taking the loans this year. $8 billion loans will be taken in this fiscal year as well. So the borrowing policy by Pakistan’s government continues.
Senate Standing Committee on Finance and Revenue has finally shown concern about the growing debt and loans of the country.
The government took $4.37 billion loan from the commercial banks and got $1 billion through the auction of Sukuk bond in the global market. $1.6 billion loan was taken from China. Out of this $1.3 billion was used up on balance of payment support. Loans for development projects from China are $565 million. Other than China, Asian Development Bank gave $1.6 billion to Islamabad, World Bank gave $664.8 million loan to the country and Islamic Development Bank (IDB) gave loan amounting to $496.8 million.
Also, the government took $26.49 million loan from Asian Infrastructure Investment Bank in the previous fiscal year.
International Bank for Reconstruction and Development, UNHCR, Japan, UK, and EU gave loans amounting to $238.83 million, $1.07 million, $51.13, $163 million, $111.8 million respectively.
No loans were given to Pakistan from Korea, Norway, Oman, Saudi Arabia, UNDP and Organisation of the Petroleum Exporting Countries in last fiscal year.
The amount of loan we have taken and the massive amount we have to payback makes it clear that even the fresh air we are breathing is not our own, it is borrowed. We live in a free land apparently but we are bound by chains all around. True that no one country is ruling us it is actually many countries and many organizations that have control over us.
Why? Because we are eating up their money and every favor granted has a payment. If we won’t be able to pay back in form of money, we will have to pay back through other means. Being slaves even when you are free, that is the current situation of Pakistan.