LAHORE
Business leaders have expressed serious concern over Pakistan’s deepening economic challenges, warning that the country is trapped in a dangerous cycle of borrowing and debt servicing that is putting immense pressure on both citizens and the economy.
The Pakistan Industrial and Traders Associations Front (PIAF) has called for an urgent and comprehensive policy reset to break this cycle and steer the economy toward sustainable growth.
PIAF Chairman and LCCI President Faheemur Rehman Saigol said that the current economic model, heavily reliant on external borrowing, is no longer viable.
He noted that repeated loans are being used primarily to repay earlier debts, leaving little fiscal space for development and public welfare.
“Pakistan is facing a structural economic issue where debt servicing consumes a major portion of national resources,” he said. “This approach is not only unsustainable but is also limiting the government’s ability to invest in critical sectors such as education, healthcare, and infrastructure.”
He stressed that the growing debt burden has indirectly affected every citizen, as rising taxes, inflation, and utility costs continue to erode purchasing power and reduce living standards.
Senior Vice Chairman Nasrullah Mughal highlighted the widening gap between economic policies and ground realities, particularly for small businesses and the working class. He pointed out that despite heavy borrowing over the years, there has been little improvement in the quality of life for ordinary people.
“The burden of economic adjustment is consistently being shifted onto the public,” he said. “Higher taxes and reduced subsidies are making it increasingly difficult for businesses to survive and for households to manage their daily expenses.”
He emphasized that without meaningful reforms, the cycle of debt and economic instability will continue to intensify, affecting industrial productivity and job creation.
Vice Chairman Tahir Manzoor Chaudhry underscored the need for prioritizing domestic economic strength over excessive dependence on external financing. He said that Pakistan must focus on expanding its tax base, promoting exports, and encouraging industrial growth to generate sustainable revenue.
“A strong and self-reliant economy cannot be built on continuous borrowing,” he said. “We need to shift our focus toward policies that enhance productivity, support local industries, and create employment opportunities.”
The PIAF leadership also called for greater transparency in financial agreements and economic decision-making. They stressed that all major borrowing arrangements should be made public and subject to proper scrutiny to ensure that funds are utilized effectively and in the national interest.
