Pakistan's total debt is projected to reach Rs 45.5 trillion in the next five years from Rs 31 trillion by end of fiscal year 2019, reflecting a whopping increase of Rs 14 trillion in the debt, according to Finance Ministry public debt management strategy. The debt management strategy was presented to the National Assembly Standing Committee on Finance chaired by Asad Umar; however, the discussion could not take place after members contended that as the report was just handed over to them and they have not gone through it, therefore they are not able to give informed view. The meeting decided that it would take up the report in the next meeting to allow members to go through it for informed discussion.
A copy of the report, available with this newspaper, revealed that the country's total debt will increase from Rs 31 trillion in fiscal year 2019 to Rs 35 trillion in fiscal year 2020, Rs 38.6 trillion in fiscal year 2021, Rs 41.2 trillion in fiscal year 2022, Rs 43.2 trillion in fiscal year 2023 and Rs 45.5 trillion in fiscal year 2024.
As percentage of the GDP, however, with the increase in the size of the GDP, Pakistan's total debt is projected to decrease from existing 80.4 parent of the GDP to 79.4% in fiscal year 2020. In the subsequent fiscal year 2021, as per Finance Ministry's projection, the country's total debt as percentage of the GDP is projected at 76.8% followed by 73.5% in fiscal year 2022 and 70.1% of the GDP in fiscal year 2023 and 66.5 % in fiscal year 2024.
The committee also deferred discussion on "The Pakistan Coinage (Amendment) Bill, 2019" after committee members expressed strong reservation to the bill seeking ban on activities of trade union. Naveed Qamar, Nafeesa Shah and Aisha Ghaus Pasha said that proposed amendment was in conflict with the Constitution and may entail consequences for GSP plus review.
Naveed Qamar said that justification given for the proposed amendment was not acceptable simply because restriction on union activities is violation of the Constitution and may have negative implications by the Europe where GSP plus is in the last phase. He also pointed out that Punjab government has also suggested ban on union activities in ease of doing business plan to facilitate the investment and this has led to concerns by the West how the government can infringe upon union activities, added Qamar. He further said that the EU is very sensitive about such issues.
However, officials of Pakistan Mint stated the amendment was proposed to impose ban on union activities because: (i) there is fear that such activities may propel the entity into loss-making one from profit-making; (ii) they may hamper smooth making of medals for different events; (iii) and it is purifying and converting gold in blocks for State Bank of Pakistan.
However, members did not agree to these reasons for imposing restriction on union activities and considered them against the Constitution. The committee recommended that Ministry of Commerce may be asked to give its input with regard to the GSP plus implications, if any. Furthermore, the committee recommended that State Bank of Pakistan may be requested for its remarks in this regard.
The committee directed the Finance Division to provide the details of the summary dated 26-12-2013 sent to the cabinet regarding the Essential Service Act, 1952. Dr Aisha Ghaus Pasha, Convener of the sub-committee, presented the report of sub-committee on ToRs "to recommend measures for controlling inflation." The committee decided that said report will be placed in the agenda of the upcoming meeting for deliberation.
A briefing was given by State Bank of Pakistan on the Eradication of Riba Bill, 2019. The committee was informed that a seven-year plan on Islamic banking is under way and that a comprehensive framework would be brought within two months. The chairman of committee directed to pace-up the work on the said bill and decided to appoint a sub-committee under the convenership of MNA Raza Nasrullah.
The committee discussed the Islamabad Capital Territory Prohibition of Interest on Private Loans Bill, 2019, moved by Moulana Abdul Akbar Chitrali, MNA, and directed the Ministry of Finance to furnish the detailed comments in this regard. The committee also recommended that a request will be sent to Ministry of Interior for seeking its views regarding enforceability of the said bill in Islamabad Capital Territory (ICT). The committee deferred the Small Business Finance Corporation (Amendment) Bill, 2019 due to the absence of the mover.
The committee considered the Bank (Nationalization) (Amendment) Bill, 2019 and the Loans for Agricultural Commercial & Industrial Purposes (Amendment) Bill, 2019 and recommended that both the bills may be passed by the National Assembly. The committee deferred the Controller General of Accounts (Appointment, Functions and Powers) (Amendment) Bill, 2019, due to absence of the mover.
The meeting was attended by MNAs Raza Nasrullah, Faiz Ullah, Faheem Khan, Dr Ramesh Kumar Vankwani, Ahsan Iqbal Chaudhary, Qaiser Ahmed Sheikh, Dr Aisha Ghaus Pasha, Nafisa Shah, Syed Naveed Qamar, Hina Rabbani Khar, and Moulana Abdul Akbar Chitrali, besides the senior officers of Ministry of Finance, SBP, ZTBL and Ministry of Law & Justice.
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