Every Pakistani now owes over Rs 101,338 in debt

[third eye]

Every Pakistani now owes over Rs101,338 in debt - The Express Tribune
LAHORE: One of the most obvious legacies of a crisis-ridden economy is a sharp increase in public debt. The country’s debt has grown since 2007, with successive governments making huge borrowings, pushing the country towards a debt trap.

As of March 2015, the total debt liabilities of the country stood at Rs19,299.2 billion. Every Pakistani now owes a debt of about Rs101,338. This figure was Rs90,772 in 2013. It was estimated at Rs80,894 in 2012 and was only Rs37,170 in early 2008.

This was the crux of a discussion held at a seminar jointly organised by the Institute for Social and Economic Justice (ISEJ) and the Islamic Relief Pakistan under the campaign ‘Breaking the Chains of Debt’, at Forman Christian College.

The debt-to-gross domestic product (GDP) ratio stands at 66.4%, in which foreign debt is Rs6.4 trillion and domestic debt is Rs12 trillion.

The external debt servicing reached close to $7 billion in fiscal year 2014, which is almost 50% of the current reserves of the State Bank of Pakistan.

The country paid $6.820 billion in debt servicing in FY15, including $5.910 billion as principal amount and $915 million in interest payments. Worryingly, 47% of whatever the government generates in revenue is going to pay off debt against 44% in the previous year.

Ideally, this ratio should be less than 30% to allocate more resources to social and poverty-related expenditures.

Speaking on the occasion, ISEJ Executive Director Abdul Khaliq said the debt situation was alarming and the government must review its reckless borrowing behaviour.

“We must demand an audit of the public debt,” he said. “All new loan contracts should be subjected to a debate in parliament and its approval.”

The government must stop reckless international borrowing and minimise reliance on foreign debt in the future and take measures to get the illegitimate loans cancelled, he said.

Khaliq emphasised the need for synergising efforts for a debt-free Pakistan and making the people of Pakistan the real drivers of the economy.

Prime Minister Nawaz Sharif during his election campaign made tall claims that on assuming power he will get rid of the ‘cancer of debts’ and promised to break the ‘begging bowl’, however, there is little evidence of measures towards freedom from debt, said political economist Dr Qais Aslam.

The government proved no different from its predecessors and started knocking on the doors of international lenders even more vigorously, he added.

In a country where 60% of the population lives below the poverty line and 58% faces food insecurity, this additional burden means more miseries for the generations to come.

Speakers further said the impact of mounting debt burden on the people is horrific. Fiscal space for social spending has drastically squeezed. Pakistan spends just 2% and 2.6% of its GDP on education and health respectively, making it the lowest in South Asia.

Published in The Express Tribune, June 4th, 2015.

 

[Optimos Prime IA]

"The government must stop reckless international borrowing and minimise reliance on foreign debt in the future"

Well not really gonna happen . But good thing though will be Chinese who lend for very small interest till the borrower works on their interest.

Dept is worst kind kind of punishment for general public . When they dint even seen that money they owe is more pathetic . High High time southeast Asia get rid of this Death trap

 

[TheFlyingPretzel]

Every Pakistani now owes over Rs101,338 in debt - The Express Tribune
LAHORE: One of the most obvious legacies of a crisis-ridden economy is a sharp increase in public debt. The country’s debt has grown since 2007, with successive governments making huge borrowings, pushing the country towards a debt trap.

As of March 2015, the total debt liabilities of the country stood at Rs19,299.2 billion. Every Pakistani now owes a debt of about Rs101,338. This figure was Rs90,772 in 2013. It was estimated at Rs80,894 in 2012 and was only Rs37,170 in early 2008.

This was the crux of a discussion held at a seminar jointly organised by the Institute for Social and Economic Justice (ISEJ) and the Islamic Relief Pakistan under the campaign ‘Breaking the Chains of Debt’, at Forman Christian College.

The debt-to-gross domestic product (GDP) ratio stands at 66.4%, in which foreign debt is Rs6.4 trillion and domestic debt is Rs12 trillion.

The external debt servicing reached close to $7 billion in fiscal year 2014, which is almost 50% of the current reserves of the State Bank of Pakistan.

The country paid $6.820 billion in debt servicing in FY15, including $5.910 billion as principal amount and $915 million in interest payments. Worryingly, 47% of whatever the government generates in revenue is going to pay off debt against 44% in the previous year.

Ideally, this ratio should be less than 30% to allocate more resources to social and poverty-related expenditures.

Speaking on the occasion, ISEJ Executive Director Abdul Khaliq said the debt situation was alarming and the government must review its reckless borrowing behaviour.

“We must demand an audit of the public debt,” he said. “All new loan contracts should be subjected to a debate in parliament and its approval.”

The government must stop reckless international borrowing and minimise reliance on foreign debt in the future and take measures to get the illegitimate loans cancelled, he said.

Khaliq emphasised the need for synergising efforts for a debt-free Pakistan and making the people of Pakistan the real drivers of the economy.

Prime Minister Nawaz Sharif during his election campaign made tall claims that on assuming power he will get rid of the ‘cancer of debts’ and promised to break the ‘begging bowl’, however, there is little evidence of measures towards freedom from debt, said political economist Dr Qais Aslam.

The government proved no different from its predecessors and started knocking on the doors of international lenders even more vigorously, he added.

In a country where 60% of the population lives below the poverty line and 58% faces food insecurity, this additional burden means more miseries for the generations to come.

Speakers further said the impact of mounting debt burden on the people is horrific. Fiscal space for social spending has drastically squeezed. Pakistan spends just 2% and 2.6% of its GDP on education and health respectively, making it the lowest in South Asia.

Published in The Express Tribune, June 4th, 2015.

Comparatively, India's debt stands at a colossal $456,000,000,000.00 (456 billion dollars) a significant $1,600 per Indian taxpaying head circa 2014. The world's only surviving superpower, the United States of America, which also happens to be among the most developed nations on this planet, has an outstanding external debt of of $18,000,000,000,000.00 (18 trillion dollars) circa December, 2014 which is a mammoth 106% of its GDP and averages at $58,500 per American head.

Similarly the United Kingdom famed for its comfortable life of plenty, in part made possible by its lavish system of welfare, has an estimated external debt of $10,000,000,000,000.00 (10 trillion dollars!) which is a whopping $160,000 per head! Luxembourg's per capita debt is $3,696,467 (yes, you read that right - 3.6 million dollars per head!) and their total debt, which is an amount in excess of $3,472,000,000,000 (3.4 trillion dollars) is 3,443 % of its GDP circa....

Isn't it odd that the most indebted countries in the world are also the most developed and the most prosperous?

 

[TheNoob]

We owe money to an invisible man!

 

[tested]

Comparatively, India's debt stands at a colossal $456,000,000,000.00 (456 billion dollars) a significant $1,600 per Indian taxpaying head circa 2014. The world's only surviving superpower, the United States of America, which also happens to be among the most developed nations on this planet, has an outstanding external debt of of $18,000,000,000,000.00 (18 trillion dollars) circa December, 2014 which is a mammoth 106% of its GDP and averages at $58,500 per American head.

Similarly the United Kingdom famed for its comfortable life of plenty, in part made possible by the lavish system of welfare put in place, has an estimated external debt of $10,000,000,000,000.00 (10 trillion dollars!) which is a whopping $160,000 per head! Luxembourg's per capita debt is $3,696,467 (yes, you read that right - 3.6 million dollars per head!) and this figure is 3,443 % of its GDP circa....

Isn't in surprising that the most indebted countries in the world are also the most developed and the most prosperous?

I was just going to point out that Pakistan's per capita debt is not much.

 

[Archie]

for India,
456 Billion USD external Debt doesnt matter that much coz we have GDP of 2.4 Trillion USD, And forex reserves of 350 Billion USD

Incase of Pakistan
You have 100 Billion USD of foreign debt, supported by 17 Billion USD forex reserves
That is a cause of concern

 

[Menace2Society]

You have to speculate to accumulate. When you don't have the luxury of natural resources the only resource left is someone else's money.

What makes the difference is how you use the borrowed money, you can use it to make a profit or do what Zardari PPP govt did and eat it all up.

 

[saurav]

As long as economy is moving, debt is not that much of an issue.

 

[Hyde]

We have to be worthy to compile the debt in the first place

Imagine if Afghanistan wants to get 100 billion dollars of debt tomorrow and rebuild the whole country with that money and may be pay back with little interest in the next 35 years? It sounds nice but no nation would offer a loan if they are not certain for money back.

 

[TheFlyingPretzel]

for India,
456 Billion USD external Debt doesnt matter that much coz we have GDP of 2.4 Trillion USD, And forex reserves of 350 Billion USD

Incase of Pakistan
You have 100 Billion USD of foreign debt, supported by 17 Billion USD forex reserves
That is a cause of concern

Unfortunately that is not how the foreign exchange reserves work.

 

[VCheng]

As of March 2015, the total debt liabilities of the country stood at Rs19,299.2 billion. Every Pakistani now owes a debt of about Rs101,338. This figure was Rs90,772 in 2013. It was estimated at Rs80,894 in 2012 and was only Rs37,170 in early 2008.

"If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem." - J. Paul Getty.

 

[Manindra]

"If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem." - J. Paul Getty.

Welcome sir, I thought you are banned permanently.

 

[Echo_419]

You have to speculate to accumulate. When you don't have the luxury of natural resources the only resource left is someone else's money.

What makes the difference is how you use the borrowed money, you can use it to make a profit or do what Zardari PPP govt did and eat it all up.

Zardari me sahi mein bahut kam kharab kiya hai

"If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem." - J. Paul Getty.

Are bahut din badh dikhe kaise ho sir jii

 

[CHN Bamboo]

Chinese seem a lot more in debt....
20,000$...

 

[farhan_9909]

Comparatively, India's debt stands at a colossal $456,000,000,000.00 (456 billion dollars) a significant $1,600 per Indian taxpaying head circa 2014. The world's only surviving superpower, the United States of America, which also happens to be among the most developed nations on this planet, has an outstanding external debt of of $18,000,000,000,000.00 (18 trillion dollars) circa December, 2014 which is a mammoth 106% of its GDP and averages at $58,500 per American head.

Similarly the United Kingdom famed for its comfortable life of plenty, in part made possible by its lavish system of welfare, has an estimated external debt of $10,000,000,000,000.00 (10 trillion dollars!) which is a whopping $160,000 per head! Luxembourg's per capita debt is $3,696,467 (yes, you read that right - 3.6 million dollars per head!) and their total debt, which is an amount i excess of $3,472,000,000,000 (3.4 trillion dollars) is 3,443 % of its GDP circa....

Isn't it odd that the most indebted countries in the world are also the most developed and the most prosperous?

Bhai jaan main likh kr toh ni de sakta lekin agar kisi indian main ghairat hai to apka post prr kr is thread main reply ni karega.