‘Give me loan and leave me alone’

Till October 1958, Pakistan was debt free. As a nation, we lived within our means. There were simplicity and austerity. Today the republic is mired under debt. Only the external component is around USD 140 billion. The entire federal budget is consumed by debt servicing and defence expenditure. There is no money left to run the glutinous non-performing state apparatus. Under the NFC (National Finance Commission) award a major portion of tax money is transferred to the provinces. Even IMF (International Monetary Fund) the lender of choice has started imposing conditionalities before releasing funds. Loan yes leaving alone no, it is indeed getting serious now. Recently, I read the line; “Give me loan and leave me alone”, which caught my attention. This is the story of the Islamic Republic of Pakistan (IRP) where borrowed money has been squandered without a trace as if there was no pay-back requirement. Easy money is the easiest trap to subjugation known to mankind for centuries. Once the debt burden is not payable, debtor nations, organizations, individuals invariably drown never to stand on their own two feet. The crippling effect is incurable. Perhaps IRP is the only country in the world where individual debt has become the nation’s burden. Those who borrow do not pay back. Loan write-offs are common together with defaults. Then there are kickback projects which are built on borrowed money with no framework for payback. IMF has recently observed that there is no check on government spending. There is no parliamentary oversight or debate; only rules of procurement are defined need assessment, and loan retirement is not considered. The government of Muhammad Khan Junejo imposed 1000cc restriction on all official transport. It was a big move that rationalized government spending. For a debtor nation, it made good sense. Then we started assembly of Japanese automobiles with a clear road map for deletion or local manufacturing but unfortunately even after four decades the programme has failed to deliver, the import bill runs into millions which needs to be drastically cut down. Driving luxury automobiles on borrowed money is indeed shameful. When it comes to finances, the golden rule is that money must be earned before it is spent. The Shylocks of our times have devised all kinds of trap to throw cash at gullible folks. While still a student in Arizona, I received a letter from the local bank. In those days banks could only operate within the state boundary to limit financial control, but later this restriction was removed. I was offered a credit line of USD 5000, there were loose cheques that could be cashed. It was a very upbeat communication which read; “Congratulations very soon you will be graduating, in your career you have the potential to earn USD 5 million. Why wait, fulfil your dreams now. ” Those who accepted this offer, spent rest of their lives in an un-correctable debt trap. In 1958, it was the Field Marshal who led the nation into this quagmire under the banner of fast-track development which in fact proved to be an entrapment. Debt is a major fault line for the republic that needs to be corrected. The choice is between moratorium and default or a combination of both but business as usual cannot continue. There should be a parliamentary committee for debt control. All future borrowing should be stopped in the next budget starting July 01, 2026. A five-year suspension of interest payments should be negotiated with the lenders. Balance of payment must be achieved. The import and export bills must be lumped together and tracked. There must be a massive cut in state expenses. Those who signed on the dotted lines and continue to do so cannot be left alone. Every borrowed rupee since the year 1985 should be accounted for. Written-off amounts should also be documented and made public. This game of hide and seek must come to an end. The term used is ‘Lutto Tay Phutto’. There is a famous Punjabi saying that ‘Those who devour carrots cannot escape pain in the stomach. ’ Waistlines cannot be hidden, only a small gaze is enough to notice them. Let the search begin; what are we waiting for? IRP is no longer financially viable. The debt bulge is ready to explode. This ostrich approach must end. In Urdu the bird/beast is called ‘Shutter Murgha’. While it is classified as poultry, it is cooked as beef. It is a flightless bird which cannot hide because of its size, as such it is an easy prey that can be hunted as cattle. Iqbal gave the concept of ‘Shaheen’, the self-reliant bird that flies high; debt has affected our flight, the perpetrators cannot be left alone any longer. Copyright Business Recorder, 2026

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