By stepping further into civilian affairs, Army Chief Qamar Bajwa addressed the business community in Karachi and presented a gloomy picture of Pakistan’s economy. Qamar Bajwa while reading a written speech said that the loans of Pakistan were running dangerously high and strong steps were needed to overcome these economic challenges.
Army Chief was also joined by ex-team of Musharraf’s military regime including Mushahid Hussain and Dr. Salman Shah.
Qamar Bajwa highlighted that the state of economy was poor due to exceptionally high amount of foreign debt. This statement is repeated by almost all political opponents of PMLN and army chief is the latest one joining the rank.
The debt is globally calculated in Debt-to-GDP ratio, not the absolute figures, otherwise the countries with highest debts would be considered to be in the worst possible economic condition.
For example, the Government debt of United States is 20 Trillion, or 20,244 Billion US Dollars!
The debt is globally calculated in Debt-to-GDP ratio. For example, if my income is 100 and my loan is 60 (60%), then it is considered manageable. However if my income is 100 and my loan is 500 (500%), then is it hard to manage.
Here are few countries with their Debt-to-GDP ratios as of October 2017:
United States -> 106.10
United Kingdom -> 89.30
Japan -> 250.40
Pakistan -> 66.50
Since the PMLN Government took over, the debt-to-GDP ratio is stable between 63 – 66 and there is no alarming or unusual situation. The following are the figures of Debt-to-GDP ratio for the last 4 years:
Pakistan Debt-to-GDP ratio:
2013 -> 63.90
2014 -> 63.50
2015 -> 63.20
2016 -> 66.50
Pakistan is finally heading to end electricity load-shedding after suffering of more than 10 years and it is expected to uplift growth to improve economy at a great scale in near future.