At present, Pakistan’s external debt is about 125 billion dollars and if we look at the rate of debt volume, the share of IMF, World Bank, ADB and other institutions is 40 to 45%, Paris Club is 10%, Japan is up to 5.5%.
It is worth mentioning here that the highest debt that Pakistan owes is to China, which is more than 30 percent, which means that in China’s 30 percent share, 23 percent is direct and 7 percent is commercial.
Apart from this, the IMF and China have a very important and key role in this whole scenario. It may take months to complete these steps. Next year only seven and a half trillion rupees will be required to pay the internal debts and this amount will be reduced. There are only two ways to do it, number one is to reduce the interest rate or print new notes.
The solution to these problems faced by the country is possible if Pakistan fulfills all the conditions of the IMF as soon as possible and more tough decisions have to be taken, besides Pakistan has to reduce the fiscal deficit that people come to save the state. If they had taken tough decisions, the situation would have been better today.
The country director of the IMF also clearly said that instead of taking these direct taxes from 23 crore people, the 75% direct tax collected from 14,000 people should be further increased and all government benefits including free electricity and petrol should be removed immediately. Salaries of millions of rupees will have to be revisited and the number of cabinet members will also have to be reduced.
