ISLAMABAD    -      The ministry of finance on Friday said that Pakistan’s overall debt has surged to 85 percent of the Gross Domestic Product (GDP), which would be brought to 50 percent of the GDP in next five years.  

The ministry of finance yesterday informed the parliamentary committee that government is taking measures to reduce the country’s debt in next five years. The meeting of the National Assembly Standing Committee on Finance and Revenue was held under the chair of Asad Umar in parliament house. The committee was informed that internal debt would be reduced 66 percent of the GDP and external to 34 percent of the GDP during current fiscal year. The officials informed the committee that government would reduce the commercial borrowing while it would increase the dependence on issuance of bonds in international market. The ministry of finance would take approval of the Debt Management Strategy from the federal cabinet.

However, the committee members said that government’s strategy to control the soaring debt is looking unrealistic. Committee chairman said that Pakistan’s borrowing from external sources may increase in the coming years due to the insufficient foreign exchange reserves of the country.

Chairman Federal Board of Revenue (FBR) Shabbar Zaidi informed the committee that government had faced tax collection shortfall in the first quarter (July to September) of the current fiscal year mainly due reduction in imports. However, tax collection would increase in the second quarter due to broadening of tax base of the country. He further said that government is working to bring traders and people from services sectors into tax net to broaden the tax base of the country.

The committee members from opposition parties have expressed displeasure over the absence of Adviser to Prime Minister on Finance and Revenue Abdul Hafeez Shaikh and Governor State Bank of Pakistan Reza Baqir from the committee meeting. They said that top officials of the ministry of finance and central bank are not giving importance to the parliamentary committee.

Committee member Nafisa Shah said that Adviser to Prime Minister on Finance and Revenue never attend the committee meeting. Other member Ayesha Ghous Pasha said that committee was supposed to discuss the report of the sub-committee on the measures to control the soaring inflation rate in the country. However, it would not be productive to discuss the report without absence of Governor State Bank of Pakistan. Committee chairman Asad Umar said that former finance minister Ishaq Dar had also not attend the committee meetings in the past. He said that opposition parties should not make point scoring on the attendance of Adviser to Prime Minister on Finance and Revenue from committee meetings.