Karachi, August 3, 2025 : Pasban Democratic Party (PDP) Chairman Altaf Shakoor has said that more than half of the country’s national budget is spent on debt and interest payments. Pakistan’s sovereignty and economic freedom are severely threatened due to heavy external debts. Addressing the PDP steering committee meeting, he said that the country’s economic and social development has stalled due to the debt burden.
Altaf Shakoor explained that more than half of the national budget is being spent on debt servicing, forcing the government into a cycle of taking on more loans to repay existing ones. This system disproportionately benefits financial institutions while exacerbating the economic problems of the people. He said Pakistan’s economic strategy is subject to international lenders, particularly the International Monetary Fund (IMF), whose approval is necessary even for the government’s relief measures.
He demanded that the Parliament immediately legislate to not take any new loans for the next ten years for economic recovery. He advocated for modern methods and the establishment of a financial framework that prioritizes the welfare of citizens over banks and lenders.
PDP General Secretary Iqbal Hashmi also expressed these concerns, saying that Pakistan is in the grip of the IMF, with almost 48 percent of the 8.2 trillion rupee budget being spent on debt servicing, leaving very little funds for development projects. He said that the average GDP growth rate in the last decade has been only 3.5 percent, and the forecast for this year is only 2.8 percent, which is very low compared to neighboring countries.
Hashmi declared that Pakistan’s financial system is broken and poverty is increasing. He said that the annual rescheduling of the principal loan amount demonstrates the country’s inability to handle further debt. Half the population is living below the poverty line, and this number is constantly increasing. He emphasized the country’s dependence on remittances from overseas Pakistanis and the government’s reliance on foreign loans and aid for its existence
