KEY POINTS
- Pakistan’s total public debt of Rs 81.4 trillion includes over Rs 21 trillion external debt
- Concerns raised over slow progress in health projects despite interest payments
- Committee seeks greater transparency, fiscal discipline, and accountability
ISLAMABAD: Pakistan’s total public debt has surged to Rs 81.4 trillion, prompting serious concern from lawmakers during a meeting of the Senate Standing Committee on Economic Affairs.
Finance Ministry officials briefed the meeting, chaired by Senator Saifullah Abro, on the country’s rising debt profile.
According to the Director (Debt), the figure includes both domestic and external liabilities, with more than Rs 21 trillion attributed to foreign debt.
Based on the latest population data, the per capita debt burden now stands at approximately Rs 325,000.
Officials attributed the continued increase in debt to structural fiscal imbalances, particularly government expenditures exceeding revenues.
High import costs, especially for oil, were identified as a major contributing factor to the widening fiscal gap.
The Senate committee expressed concern over the government’s reliance on fresh borrowing to service existing domestic debt.
The chairman questioned the sustainability of this approach and urged the Finance Division to explore more viable, long-term fiscal strategies.
He also raised the issue of public spending, suggesting that reductions in discretionary grants could help ease fiscal pressure.
During the session, members sought clarification on Rs 65 billion loan extended to commercial banks by the central bank.
Senators asked the authorities to provide further details, including a province-wise breakdown of debt liabilities, in the next meeting.
The committee also reviewed a proposal to encourage affluent citizens to voluntarily contribute towards reducing the national debt.
Senator Rubina Khalid stressed that any such funds must be strictly allocated to debt servicing and protected from misuse.
Separately, the committee examined progress on the National Health Support Program, initially backed by the World Bank.
The Secretary of the Economic Affairs Division said the initiative, launched in late 2022, aims to strengthen healthcare infrastructure, workforce capacity, and access to essential medicines in rural areas.
However, lawmakers expressed dissatisfaction over the pace of implementation, noting that only administrative arrangements have been made so far despite significant financial commitments.
It was revealed that the government has already paid USD 4.178 million in interest without tangible outcomes.
The chairman described the situation as deeply concerning and summoned the Secretary of the Ministry of National Health Services to explain delays in the next session.
Provincial officials from Sindh also briefed the committee on efforts to expand access to primary healthcare services.
However, gaps remain, with the chairman highlighting the absence of basic health facilities in villages located near Garhi Khuda Bakhsh and calling for urgent establishment of health units, including maternal care services.
In addition, the committee took notice of alleged interference in the World Bank-funded Akram Wah Canal project by a local individual.
Authorities were directed to take formal action to prevent any disruption that could undermine confidence in international development partnerships.
