'Law needed to avoid hasty borrowings'

President Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain said Fiscal Responsibility and Debt Limitation (FRDL) Act, 2005 has not served its purpose, therefore, an effective law should be introduced to deter rulers from irresponsible and hasty borrowings. He said that tax measures and improved economic policies will not be enough to tackle the challenge and only option to deal with it is rescheduling the part of the debt.
He said deficit likely to reach US 60 billion dollars by 2023. Moreover, US 40 billion dollars will be needed to service the debts by 2023 which boosts total requirement to $100 billion which is a third of Pakistan's GDP, he said. He said that the government will not be able to cut its expenses, a cut on defence expenditure is impossible; therefore, the axe will fall on the tax system.
He said that Pakistan is to pay almost $20 billion to China, Saudi Arabia, UAE, and Paris Club which if rescheduled for five years will provide great relief. On the other hand, multilateral institutions will not reschedule debt but due to IMF programme these institutions will be willing to lend another $10 billion dollars.