Avoid debt trap

Avoid debt trap

Dr. Jassim Taqui

Argentine has worked hard during the last 15 years to avoid bankruptcy. The interest on borrowing from IMF and small private investors of 5000 has resulted in increasing the interest by 2000 percent. The debts issue has serious negative consequences on our lives. It increases rapidly poverty to 56 percent. It has also increased by the same margin  the unemployment. It has resulted in the loss of huge wealth. Even today, Argentine is facing the problem but the government has been able to avoid default.

The above were the highlights of a public talk by the new Ambassador of the Argentinian Republic  Evan Ivanissevich. He was speaking  to an august audience on “ Debt Restructuring In developing countries: The Case of Argentina 2001-2016,” at the ISSI. The Chairman of ISSI Khalid Mahmood acted as a moderator.

In the Question-Answer session, Ivanissevich declined to comment on Pakistan’s dependence on IMF and borrowing from local and international private banks just to avoid default and /or to cover the deficit in the budget.

However, Ivanissevich thought that Pakistan should try its level best not to default even if that warrants taking harsh financial measures.

In his concluding remarks, the Chairman ISSI Khalid Mahmood maintained that  the high and rising debts constituted a burden on the economic development and a “serious danger to the national security.” He advised the government not to allow circumstances to dictate on Pakistan a  state of default.