Senators raise alarm over rising debt amid lack of roadmap for economic stability

ISLAMABAD: Senator from the treasury and opposition benches expressed dissatisfaction over the increase in the country’s debt in the ongoing Senate debate on budget 2025, terming it a barrier to progress.

It is worth noting that almost 43 per cent of the expenditure in the federal budget of Rs 19.722 trillion would go towards paying off the national debt that will be over Rs 8 trillion.

PPP Senator Sherry Rehman said that Pakistan was paying too much towards its loans, which was hindering economic development. She talked about loss suffered by SOEs amounting to Rs 832.8 billion in FY 2025 and urged reforms in governance and rationalising the government machinery along with broadening the tax base and going for direct tax system.

She also showed frustration over decline in allocation for climate issues even though the country was highly vulnerable to the climate change.

On his part, Opposition Leader Senator Raja Nasir Abbas referred to the budget as being anti-people since it made the country dependent on foreign lending and poor people bear the brunt of high taxes.

PTI Senator Mohsin Aziz also criticised the budget, saying it offered little relief to the public amid rising inflation and mounting debt.

He argued that political instability was hurting economic growth, criticised fuel levies and electricity policies, and urged the government to reduce reliance on the IMF and adopt policies focused on public welfare and economic development.