Islamabad: Pakistan’s debt burden has increased to an alarming level and due to the increasing debt on the country, every Pakistani citizen is currently indebted to Rs 318,252.
The latest report on the country’s debt situation by Economic Policy and Business Development states that currently every Pakistani citizen is indebted to Rs 318,252, while 10 years ago each citizen was indebted to Rs 90,047.
According to the report, Pakistan’s debt burden has increased at an average rate of 13 percent annually and the debt on every Pakistani has tripled in the last 10 years.
Regarding debt, it has been further stated that Pakistan’s debt burden is increasing at an average rate of 13 percent annually and the debt burden doubles every 6 years.
The Economic Policy and Business Development report states that the government should immediately adopt fiscal discipline, widen the tax net, reduce the policy rate from the current 11 percent to 9 percent, reducing the policy rate will reduce the interest cost on loans by 1.2 trillion rupees.
According to the report, reducing the policy rate will increase financial capacity, businesses will be more competitive.
The government has been warned that the debt situation is much worse than other countries in the region because Pakistan’s debt is equivalent to 70.2 percent of the country’s economy.
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