Karachi: Mian Zahid Hussain, a prominent Pakistani business leader, expressed grave concerns on Tuesday regarding the nation’s economic health, warning that excessive reliance on borrowing is jeopardizing the country’s financial integrity and stunting its development. His statements highlight a cycle of debt that not only threatens economic stability but also diverts critical resources from development to debt management.

According to Pakistan Businessmen and Intellectuals Forum, Hussain criticized the current economic strategy, indicating that the focus of Pakistan’s economic managers and heads of major state institutions is overwhelmingly consumed by debt servicing and securing new loans, leaving little room for strategic planning and growth initiatives. He noted that continual borrowing has become a routine that hampers constructive economic activity, with major entities like Pakistan International Airlines and the Railway Ministry trapped in a relentless cycle of financial obligations.

Hussain elaborated on the challenges faced by Pakistan in managing its debts, including complicated negotiations with the International Monetary Fund (IMF) and other lenders. These difficulties are compounded by the IMF’s conditions, which require Pakistan to secure debt rollovers from friendly nations before further funds can be disbursed, creating a deadlock that delays financial aid and fuels investor uncertainty. This situation is exacerbated by a resistance to tax reforms within vital sectors of the economy, further straining the country’s fiscal policy.

The business leader also touched on the intertwining of terrorism and political issues, which he claimed has fueled regional discord and jeopardized major infrastructural projects like the China-Pakistan Economic Corridor (CPEC), Gwadar port, and significant dam constructions. The escalating security costs and the ballooning expenses of these projects pose additional risks to Pakistan’s economic future.

Hussain called for a reevaluation of policies that treat protesters as threats to state security, advocating instead for resolutions through dialogue while addressing terrorism with decisive action.