December 20, 2020
The real dilemma of the PTI government is that it has no plan short-, medium- and long-term to overcome fiscal maladies
For Pakistan the main challenges on the fiscal front for 2021, just a few days away, are not only the revival of the economy amid rising human and financial toll of Covid-19 pandemic, but also how to manage the mounting debt burden and meeting revenue targets fixed for the fiscal year 2020-21.
According to a recent report, the PTI government has “added Rs 397 billion in public debt during the first four months of the current fiscal year, which is contrary to a claim” allegedly made by Prime Minister Imran Khan and Finance and Revenue Minister Dr Abdul Hafeez Shaikh. It is claimed in the State Bank report that public debt of Rs 35.1 trillion in June 2020 “increased to Rs 35.5 trillion by end-October.”