Foreign debt is an outstanding loan that one country owes to another country or institutions within that country, and also includes due payments to international organisations such as the IMF and World Bank. In the month of October 2016, Pakistan’s foreign debt has reached an all time high and foreign direct investment remains low. The IMF has estimated that if Pakistan continues to acquire external loans at this pace, the loan is likely to swell to 90 billion Dollars by 2020 which is a terribly dangerous figure in the economic history of any country. The reliance on external financing has rusted away the country’s economic potential. To minimise the dependence on the external hand, Pakistan needs to stabilise its economy; reducing imports, improving the balance of payment, and diversifying exports. Such structural changes will make the economy more stable and reduce the need to acquire foreign debt. 

We always talk about political terrorism, religious terrorism, social terrorism, but never about economic terrorism. In the words of John Adam, on the stable basis for growth, getting off the roller coaster, reducing the imports and balance of payments and diversifying resources for the export promotion. Hence, the structural changes in economy will make it stable and reduce the possibility of foreign debt. 

We always talk about Political terrorism, religious terrorism, social terrorism but never talk about Economic terrorism. In the words of John Adams, “There are two ways to conquer and enslave a nation. One is by the sword and the other is by debt.” 

SANA ASIM,  

Karachi, October 14.