Lahore: Pakistan will struggle to break out of cycle of ongoing debt repayments without reform, PTI Chairman Imran Khan told Financial Times in an interview.

Imran told publication that government needed to break out of borrowing cycles that have held back developing economies. He, however, ruled out default if his party returned to power, saying it would prioritise domestic reforms over seeking debt relief.

“Whatever we do, when we look ahead, debt is growing, our economy is slowly shrinking. From my party’s point of view, we’ve started thinking that we’re stuck,” report quoted him as saying.

Remarks came as country is in talks with International Monetary Fund to secure final tranche of $ 1.1 billion since February.

This amount is part of larger $ 6.5 billion bailout package. Imran Khan criticised government’s inability to pull country out of its current economic crisis. He emphasised need to break free from borrowing cycle that has hindered growth of developing economies.

He asserted that Pakistan would struggle to overcome cycle of debilitating debt repayments without implementing significant reforms.

Imran Khan said that his party would prioritise domestic reforms over seeking debt relief, ruling out default.

Financial Times quoted Khan explaining his plans to revive economy, which included restructuring loss-making state-owned enterprises and expanding tax base. He questioned whether borrowing more money was solution to country’s financial problems or whether restructuring government’s operations was necessary.

Khan highlighted that country’s dollar income needed to improve or increase if it were to pay off its debts. He questioned how Pakistan would be able to service its debts if it did not increase its dollar earnings through exports.

Published in The Daily National Courier, April, 14 2023

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