External debt burden not to bankrupt country: Mian Zahid Hussain
Islamabad, November 14, 2016 (PPI-OT):President Pakistan Businessmen and Intellectuals Forum (PBIF), President AKIA, Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister Mian Zahid Hussain on Monday said external debt burden has touched alarming proportions but it will not bankrupt country.
External debt has touched mark of 73 billion dollars while experts have estimated that it will jump to 110 billion dollars in four years while the repayment obligations will stand at 22 billion dollars, he said. Mian Zahid Hussain said that soon the repayment of loans will eat up large portion of export earnings which can be countered through good growth rate and enhanced exports.
The business leader said that incumbent and former governments added around 49 billion dollars to the external debt which should be countered lest country has to knock the door of multilateral donors. He said that current account deficit has touched worrying proportions while the import of machinery for economic corridor will add to the deficit.
Country would need to bridge a gap of eleven billion dollars for which loan will be the only option if reforms were delayed, he warned. Mian Zahid Hussain said that country can avoid another loan from IMF to bridge deficit if it undertake serious reforms without delay. Pakistan is fast slipping into the debt trap therefore the government and parliament should play its due role.
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