By taking loans, the ongoing development work in Pakistan can further challenge bigger challenges for its economy. Asian Development Bank (ADB) president Takheiko Nako has said that although Pakistan may have grown in the last few years, increasing debt and rapidly declining foreign exchange reserves can present a serious challenge to it. He said that Pakistan has developed, but it needs to be very vigilant. Many knowledgeable people have expressed concern over the growing debt of Pakistan about the CPEC can trap him in serious trouble.
According to the Express Tribune report, during a meeting, Takehiko said, ‘I went to Pakistan twice and saw development there.’ This comment is important because GDP growth will touch 12-year high by the end of the current financial year. GDP growth in FY14 was 4.1%, which increased to 5.8%. The country’s current PML-N government can miss its target but it has improved. Although the story of this development has two aspects and the other side can not be called better.
First, the growth that appears in Pakistan is a huge debt. In this way the need for sustainable development is being felt. Pakistan has to take the biggest loan under the China-Pak Economic Corridor (CPEC). In December 2017, Pakistan’s total debt increased to 22.8 trillion rupees (Rs 22.8 lakh crore). Pakistan has also taken loans to balance foreign exchange reserves.
During the belt and road conference in Beijing recently, IMF’s Managing Director Christine Lagarde said that under the BELD and Road Initiative (BRI), the countries concerned can get good infrastructure but it should not be considered as ‘free lunch’. He also expressed concern over the rising global debt due to BRI.
It is a matter of serious concern for a country like Pakistan, who are already trapped in debt. The $ 46 billion investment project has now increased to $ 62 billion. This means that in the next 30 years Pakistan has to pay billions of dollars of debt. Expressing fears over the IMF, the Pakistan government has warned that the opposite results may come out.
On this issue, Nakao said that connectivity is important and ADB is also willing to cooperate, but at such a time economic potential and the possibility of its completion should be considered. He said, “If we invest money by borrowing, then we need an economic return. If any country lends itself without considering the completion of the work or its practicality, then it can be difficult to repay the loan.
He insisted, “I agree with Lagarde’s concerns. Before taking a loan on a project like BRI, we should take it seriously. ‘ The President said that relations between China and Pakistan are going well, it is a pleasant sign. Although he expressed concern over the trade war between the United States and China and said that if the business relationship in both countries worsens, then Asian countries will also be harmed.
Is against India
India is angry with the CPEC project because it passes through POK. It is also true that the BRI initiative lacks transparency and it is being implemented arbitrarily.