This refers to the news report ‘Pakistan net revenue receipts drop all-time low’ (Dec 10). As reported, the net revenue receipts of the federal government during July-Sep 2016 are insufficient to meet even the debt servicing obligations of the country. This simply means that the state is financially bankrupt and does not have funds to cover defence expenditure, running expenditure of the government and development expenditure.
While the fiscal position is precarious, the external sector is also bleeding with falling exports, rising imports, dwindling FDI, decreasing remittances and increase in debt servicing burden. As a consequence, the forex reserves are sliding. These signs are precursor of an economic collapse scenario and emergence of an irretrievable debt trap. The unfortunate part is that the government is not pushed about the deteriorating economic situation and no remedial measures appear to be on the cards.
Kulsoom Arif
Karachi
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