Top economists and debt policy experts in Pakistan argue that the rising level of public debt has become a major threat to economic stability and development, and has already become fiscally unsustainable. Just last year, the Pakistani government took on $12.5 billion in new debt.
Government debt must be scaled down, improved in composition, and managed professionally. This was the message out of the National Debt Conference, held in Islamabad, Pakistan by the Policy Research Institute of Market Economy (PRIME).
One conference speaker, Sakib Sherani, identified power sector subsidies, poor debt management, and technical inefficiencies as factors that escalate public debt.
PRIME’s Executive Director Ali Salman said that the National Debt Conference was organized to raise awareness among parliamentarians, policymakers, and the public about the rationality and consequences of runaway public debt and its consequences on economic freedom.