Khyber Pakhtunkhwa’s Economic Resilience Shines Despite Debt Misconceptions: Muzzammil Aslam

Khyber Pakhtunkhwa’s Economic Resilience Shines Despite Debt Misconceptions: Muzzammil Aslam

Khyber Pakhtunkhwa govt has refused to take three foreign loans in the last two months: Mr. Muzzammil Aslam

Advisor to the Khyber Pakhtunkhwa Chief Minister on Finance and Interprovincial Coordination Muzzammil Aslam has said that a recent published news story regarding the province’s debt as “misleading”. According to Aslam, the province’s debt is minimal compared to its GDP and receipts. He pointed out that Khyber Pakhtunkhwa’s estimated GDP stands at $40 billion, while its debt is a mere $2.5 billion.

Mr. Aslam highlighted the province’s remarkable economic resilience, with a 3.9% growth rate last year, surpassing Pakistan’s 2.5% growth rate. Advisor on Finance also noted that Khyber Pakhtunkhwa’s debt servicing is less than 5% of its total receipts, significantly lower than the federal government’s 90%. The finance advisor clarified that the increase in debt is not due to extraordinary borrowing but rather the 75% devaluation since April 2022. He also revealed that the province has refused three foreign loans in the last couple of months, contradicting claims that lenders are unwilling to lend money to Khyber Pakhtunkhwa. Mr. Muzzammil Aslam termed such claims as “blatant lies”.