Explainer: Pakistan’s mountain of debt

If you are a Pakistani, you owe the world more than Rs16,000. This is because government after government has not been able to get more people to pay taxes. Instead it borrowed to pay for its operations (salaries, pensions, defense spending, development).

Islamabad’s reliance on borrowing all these years has created a mountain of debt. It is currently Rs35,800 billion. It has come to a point where they have to take more loans to pay off the older debt and the cycle goes on.

In the first six months (July-Dec) of this financial year 2021, interest payments alone ate up a third of our overall expenditure, leaving little money to be spent on Pakistan’s people. In this video, editor SAMAA Money Farooq Baloch explains why we got here and what needs to be done to break the begging bowl.



from SAMAA https://ift.tt/3cVM6Mj

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