Islamabad: A meeting of the Senate Standing Committee on Economic Affairs was held today, where concerns were raised over Pakistan’s rising public debt, which has reached Rs. 81.4 trillion. The Committee, chaired by Senator Saifullah Abro, discussed the heavy reliance on borrowing and urged the Finance Division to develop sustainable financial policies. Additionally, concerns were voiced over delays in the National Health Support Program, with calls for accountability in project implementation.
According to Senate of Pakistan, the briefing informed the Committee that the public debt comprises both foreign and domestic components, with over Rs. 21 trillion attributed to external debt. The per capita debt burden stands at approximately Rs. 325,000 per citizen. The persistent increase in federal fiscal debt is primarily due to government expenditures exceeding revenues, with oil imports being a significant factor. The Committee was informed that the government often services domestic debt by acquiring additional loans, prompting the Chairman to question the sustainability of this approach. He also raised concerns about the lack of cuts in grants to parliamentarians and urged the Finance Division to formulate financially beneficial policies.
The Chairman also sought details on a Rs. 65 billion loan extended to banks by the State Bank of Pakistan and directed the Finance Division to provide province-wise debt liability details in the next meeting. The Committee discussed a proposal for offering the outstanding per capita debt to affluent citizens for voluntary repayment, with Senator Rubina Khalid emphasizing the need to safeguard such funds against misuse.
The Committee was briefed on the National Health Support Program, initially funded by the World Bank for Islamabad Capital Territory, Azad Jammu and Kashmir, and Gilgit-Baltistan. However, the World Bank later withdrew funding for AJK and GB due to its policy of not financing projects in disputed territories. The project, aiming to strengthen healthcare infrastructure, has seen slow progress, with only an office established so far. The Chairman expressed concern over the USD 4.178 million paid in interest without tangible progress and summoned the Secretary, Ministry of National Health Services, for the next meeting.
Officials from the National Health Support Program, Health Department, Government of Sindh, also briefed the Committee on health initiatives in the province, focusing on improving access and quality of essential healthcare services. The Chairman highlighted the lack of basic health facilities in a village near Garhi Khuda Bakhsh and stressed the need for a Basic Health Unit with gynecological services.
The Committee also addressed alleged interference by a local individual in the Akram Wah Canal project, funded by the World Bank, and directed authorities to issue a formal notice to the individual for actions potentially undermining the credibility of an international development partner.