Senator Farhatullah Babar of Pakistan Peoples Party Parliamentarians (PPPP) on Monday said that the government had increased borrowing by making a change in the Fiscal Responsibility and Debt Limitation Act through an SRO, which is illegal. Speaking at the Senate on a motion moved by Nisar Muhammad of ruling Pakistan Muslim League-Nawaz (PML-N) about foreign loans and their utilisation, he said that the government has quietly increased the debt limit from 60 percent to 65 percent which should be debated in the Parliament.
"An SRO was quietly issued by the government to increase the foreign debt limitation limit from 60 percent to 65 and that too quietly, instead of bringing an amendment in this regard if that was so necessary, and I would request the chair to refer the matter to [Senate] Committee of the Whole or the Standing Committee on Finance," he urged.
Speaking on his motion, Senator Nisar said that all the governments since creation of the country, including the incumbent government, had been obtaining loans without the consent of the Parliament.
"These loans which are obtained in bulk by respective governments ultimately put all the burden on common man, who is suffering due to heavy taxation, whether direct or indirect and skyrocketing inflation, so there should be a check on getting foreign loans," he proposed.
Mir Kabir Shahi of NP said that before getting any foreign loans, the Parliament should be taken into confidence, and if it is not possible, the record of the loans should be presented in both the houses and there should be a debate on it. Shahi Syed of ANP said that the issue of foreign loans which are obtained by the federal government should be raised by the chief ministers in the meeting of Council of Common Interest (CCI), as all these loans are paid by the people.
Senator Taj Haider said that some people in the country have companies in Panama, while those on whose name foreign loans are obtained do not have even pajamas (trousers). He said the difference between the rich and the poor should be eliminated or else the poor will get poorer and the rich will get richer.
Barrister Muhammad Ali Saif of MQM said that Finance Minister Ishaq Dar is getting loans from international monetary institutions in order to add the borrowed money to the foreign exchange reserve to show as if the country is doing quite well economically. "The country has got no benefit whatsoever from these loans...it should be made mandatory for the government to get foreign loan ratified from the Parliament and the government should inform the National Assembly and Senate where it is going to spend the borrowed money," he said.
Colonel Syed Tahir Mashhadi (retired) of MQM proposed that there should be a parliamentary oversight of the foreign loans. He regretted that State Bank of Pakistan is reluctant to give details of the loans, and it should be made mandatory that no loans would be obtained without taking the Parliament into confidence. Winding up the debate on behalf of Finance Minister Ishaq Dar, State Minister Balighur Rehman said that utmost transparency is ensured in obtaining and utilising foreign loans, adding the government has successfully concluded IMF loan, which has increased Pakistan''s credibility internationally. He said now a record foreign investment can be witnessed in the country. He said that new industry is being established and the old one is being revived. He said revenue targets have been successfully achieved which has increased fiscal space in Pakistan.