PM Khan wants Finance Ministry to examine exponential increase in debt over past 10 years
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Prime Minister Imran Khan while chairing a meeting of the federal cabinet instructed the Finance Ministry to conduct an analysis of how Pakistan's debt increased from Rs6,000 billion to Rs30,000bn in the span of 10 years, Radio Pakistan reported on Thursday.
"We need to know where that money went and what projects it was used in. Our government has just come in and we have been forced to take loans to pay off the loans that they [the previous governments] took. At least we should know where those loans went," the prime minister said.
"This analysis is also important as our government, which sees that the country is already in debt, will have to think twice about taking more loans. We will at least have to see that the loans that we take create more wealth so that they can be returned," he added.
PM Khan directed the Finance Ministry to present its detailed analysis on the matter in another cabinet meeting.
According to Radio Pakistan, the federal cabinet is expected to take important decisions including the appointment of heads of Pakistan International Airlines (PIA) and the Privatisation Commission.
Referring to the launch of his ambitious Naya Pakistan Housing Program, the prime minister said that the entire administrative structure for the project would be completed on priority basis.
He said that not only would the project generate economic activity, but also add new entrepreneurs, increase the number of skilled workers and create employment in the country.
While announcing the launch of the housing project on Wednesday, that the scheme will bring long-due prosperity in the country, he said, adding that at least 40 other industries connecting with housing will also be set in motion as soon as construction is started for the project in urban as well as rural areas.
The construction for the scheme will be carried out by the private sector, while the government will facilitate it by removing hurdles and providing the land for the construction.
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Comments (52) Closed
Oct 11, 2018 01:30pm
It will be quite appropriate to work out the worth of such loans after a five years period at the same time from today.
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Oct 11, 2018 01:40pm
Good move, the process should be fast to examine this and immediate action must be taken against those who are responsible for this mess. Good luck captain!
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Oct 11, 2018 01:41pm
Ok. Try to find it but you knew about the situation when you were in opposition, Where is the plan to address this issue?
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Oct 11, 2018 01:42pm
One reason for increase stands out loud and clear ...... it's the increase in property prices in leading cities around the world especially in London , New York, Toronto and the speculative nature of property in Dubai.
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Oct 11, 2018 01:47pm
Used in commision and allocation done to MPA' MNA for running election campaigns and also used for personal house renovations of some mulanas etc
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Oct 11, 2018 01:53pm
waste of time in such exercise, instead to plan for future, there are lot of sectors from where money can be generate, but there is lack of vision in ministers. Ministers are only in to enjoy and give statements.
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Oct 11, 2018 01:53pm
Mismanagement, cronyism, luxuries lifestyle of rulers, and corruption coming out of woodwork are the causes. Discovery of many fake accounts is just tip of the iceberg.
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Oct 11, 2018 02:01pm
Stay put more to come! keep your eyes open for rescheduled loans by President Musharraf.
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Oct 11, 2018 02:05pm
I think it is a good idea to examine what went wrong in Pakistan so that culprits responsible for the destruction can be taught a lesson for stealing taxpayer's money. However, what is really important is to look for improving the situation and perhaps main focus should be on that. The nation is with you.
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Oct 11, 2018 02:09pm
The only strategy of PTI is to blame the previous government.
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Oct 11, 2018 02:17pm
Great IK
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Oct 11, 2018 02:17pm
Face saving measure. He should focus on future not in past as per the situation.
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Oct 11, 2018 02:23pm
Fix the current issue rather than always looking back, you guys knew what had happened and yet had no plan to fix the current issue
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Oct 11, 2018 02:25pm
What about from the times of musharraf.do you fear jahangeer tareen might be caught in it.shouldnt it be from the early nineties.i dont think so it will be so hard.
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Oct 11, 2018 02:27pm
Another drama to keep nation busy, no plan, no homework, disappointness increases day by day.
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Oct 11, 2018 02:29pm
Move forward and try to out this web of debt.
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Oct 11, 2018 02:30pm
@Taimur He will go back to your party leaders for plan, Doctor prescribes only after seeing the patients.
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Oct 11, 2018 02:34pm
Anyone who experienced the load-shedding before and after the previous government took ov
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Oct 11, 2018 02:40pm
Anyone who experienced the load-shedding before and after the previous government took over would realize that a lot of that money went into power plants.
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Oct 11, 2018 02:47pm
So he can blame previous governments for his incompetence!! It was 6000bn in 2008, 15000bn in 2013 and 28000bn in 2018. What is his target for next 5 yrs? And why you launched Naya Pakistan Housing Program in such a critical financial situation?
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Oct 11, 2018 02:49pm
The past government thought that these souvenir loans from outside are like same as they took from local banks from 1980 to 1998 during their rule and were written off.Even our last PM Abbassi imported luxury cars of Rs80m each when leaving office.Maximum loans were siphoned out by the rulers from so called mega projects and in Sindh without even any projects direct thru benami accounts under payment to contractors for non existing projects.
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Oct 11, 2018 02:54pm
@Taimur You have to find the culprits behind this big debt and deal with them
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Oct 11, 2018 02:54pm
The previous administrations never used the word 'transparency' but they sure knew the word 'murkey', just like NS answers to how he amassed wealth beyond known means!
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Oct 11, 2018 02:59pm
@Taimur IK is playing naive
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Oct 11, 2018 03:02pm
Astonishing,previous government stated that they used money in proper way.Then, why the country still under debt crisis?It, means everyone just trying to fooling the people in different ways.
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Oct 11, 2018 03:07pm
Empty noises...take action jow...don’t go back and start blame game...now is time to deliver...
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Oct 11, 2018 03:14pm
All loans were approved by the Babujis of the Finance Ministry. Now you ask the same people to look at the reasons. They will only blame the politicians. Note that Mr Khan these same officials will blame you once you are out of power.
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Oct 11, 2018 03:22pm
Mr. Khan, you can do whatever investigation you want. But need to do something to bring the economy back on track. Only investigation and arranging people will not solve. Remember you are not in opposition but in power now.
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Oct 11, 2018 03:37pm
when he is unable to find the solution of the crisis now further gimmicks to engage this nation.
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Oct 11, 2018 03:54pm
Finance ministry should work full time on restoring economic credibility after that they can be burdened with this tasks, Till then other agencies can being the investigation.
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Oct 11, 2018 04:02pm
Dear prime minister its OK to focus on corruption and looted wealth but most of it won't be recovered. Unless wealth doesn't increase, economy won't improve. Pakistan needs to to find ways to get money into the economy. Agro based products are one way but international market is quite competitive. I don't know which other sector has potential for exports.
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Oct 11, 2018 04:17pm
@Pak Army Yes they used the money on proper ways, and all the ways went to their own houses, just yesterday, new Islamabad Airport Bridge collapsed, and the way was going to Ch Munir House, Maryam's Samddee,
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Oct 11, 2018 04:29pm
IK needs to get out of the past and fix the problems now.
He took on the task of being the PM. Now his responsibility to fix the mess he is in now.
If you can't stand the heat, get out of kitchen.
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Oct 11, 2018 04:30pm
what were you doing when you were in opposition .... arent their Standing committees which you were a part of ?
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Oct 11, 2018 04:39pm
Every country in this world taking loans for development. Every company running on bank loans, then why we are so wonder. Loan amounts are utilized for developments works like roads, motorways, power, health, to pay debt installments. Please focus on future, Pakistan is in very critical position and you have promise with the nation that you will resolve all issues of country, therefore stop blame game and perform. Now you are on driving seat and you are responsible to provide every thing to nation, you have promised despite all issues.
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Oct 11, 2018 04:54pm
@Ahmed Very true.
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Oct 11, 2018 05:03pm
half of impact is due to devaluation of rupee. 10 years back it was 60, now 135.
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Oct 11, 2018 05:03pm
Very good move by the PM.
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Oct 11, 2018 05:36pm
The Rs. 30 billion debt went to the coffers of Zardaris and Sharifs. No need for further analysis.
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Oct 11, 2018 06:17pm
Unless there are results.. unless the perpetrators are held responsible for this mess. unless there is punishment... unless all institutions synchronized to the tune, I don't expect any major outcome...You will never understand bureaucracies until you understand that for bureaucrats procedure is everything and outcomes are nothing.
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Oct 11, 2018 06:40pm
Loans are part of life in this age. Western countries debts are in trillion.
Pakistans 's GDP/Debt on the low side.
Every legitimate big business needs bank loans.
Eeven houses for new housing scheam will be on installments.
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Oct 11, 2018 06:52pm
Appreciated this move. A complete analysis must be worked out together with future cash flows to ascertain foreign debt payment capacity and also a worst scenario if no ability to rapay.
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Oct 11, 2018 07:26pm
@Mohsin Rafique You have to know where the borrowed money was spent to evaluate mistakes made. Yes plan for the future but know the past.
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Oct 11, 2018 07:55pm
PM Khan wants Finance Ministry to examine exponential increase in debt over past 10 years. ONLY to bash his opponents over their heads and prevent Nawaz Sharif from escaping the law. Otherwise those numbers have no value.
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Oct 11, 2018 08:05pm
Good, save a copy to be reviewed after 5 years from now !
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Oct 11, 2018 08:07pm
We need a person who have the gutts to go against the tide and issue a financial emergency, stop all non-essential impoets, order reduction in non-essential defence budget (trust me there is plenty to be shelved) and start a drive of make in pakistan!
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Oct 11, 2018 10:43pm
Salam Sir: A good decision. My humbler request our PM and MoF, if we want a meaningful and creditable report, we engaged 10 Public Accounting Firms of first tier, and allow each of them to conduct "forensic" audit of one year. By doing so, we are likely to have results in say 2-4 weeks by 10 professional firms. They should be asked to act independently, but the report format should remain so like with like can be be easily compared.
I also request, that while looking back is fine, but it may not give us much joy. One cannot keep crying over the spilled milk. The new Government has to move forward please. If we are very keen to unearth past, we may create an Agency for that, and let the current Ministers and PM focus on way forward!
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Oct 11, 2018 10:57pm
@Adi Agree - someone has to start from Zero budgeting concept. Defense budget is almost 25% of the total budget and 25% goes to debt serving, if I am not mistaken. A country where 50% population are on marginal line and in poverty, can we afford all this?
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Oct 11, 2018 10:58pm
@Aakif Siddiqui Sir when you cannot defend yourself, you attack take action to pass the blame or silent your opponents. Shift of focus - don't look at me! Time and again tried by politicians, and has worked as well in this sort of environment
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Oct 11, 2018 11:01pm
@aslam good point - once I was in Rome and we had a US Motivational Speaker. He told us that US prints notes without any gold reserve. Each US national owes 50,000 and that is fine! IMF and WB also encourage countries to borrow. An example is Saudi Arabia. They have cash reserves in excess of 600 Billion. Yet they are borrowing money!
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Oct 12, 2018 12:21am
Increase in last 10 days is much more than the last 10 years.
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Oct 12, 2018 05:30am
PM khan is absolutely right. A detailed audited analysis is required to find out what exactly happened to cause such a requirement for the increased national debt. Unless government knows what caused the whole nation will be in the dark. Countries or business can’t survive unless reason for failure is found.
A result oriented audit to rectify mistakes and to prevent theft should be initiated by the reputable firms or teams.
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