Growing external debts - Letter to the Editor

The foreign debts, if fail to stimulate country's economy, creates a serious dent in the well being of the country. Pakistan's foreign debts have been on the regular increase during last some years, and it shall remain as such for at least few years more, as predicted by IMF. This state of affairs has been due to ever existing budgetary deficit and balance of payment.
Presently we are forced to borrow due to highly increased expenditure on security, because of war against terror. Our growth - industrial as well as agricultural - has decreased due to shortage of power.
The decreased growth and recession throughout world has badly affected our exports. The foreign investments have almost dried up. Further the unproductive government expenditure has also increased.
And above all servicing of external debts and its repayment through installments, for which further loan will have to be taken, make this whole scenario more and more difficult for Pakistan's economy. Under such horrible state of affairs, we require sound planning and its implementation at every step, by knowledgeable and experienced persons.
First, we must increase our power generating capacity to raise our growth, both industrial and agricultural.
All efforts must be made to increase our exports. The business community as well as our embassies in foreign countries must be given export targets to meet, backed by rewards. This is a complex task, requires foolproof planning, honest and untiring efforts in the best interest of our beloved country Pakistan.
Moreover sincere efforts should be made to attract foreign investments. We all as a nation should stand up, to be in the service of our country Pakistan, to make Pakistan a very respectable state among the countries of the world.
We must understand that our economy is sagging, and there is likelihood (God forbid) of our being mired under external debts trap. We must realise it and face it bravely and must come out with flying colors.
Syed Zahid Bukhari
(Ret) Senior Vice President, HBL