How Pakistan can reduce foreign debt? Suggest mechanism in Pakistan economy to handle external perspective of Pakistan economy. (CSS-2011)



1. Introduction


2. Overview and Comparison

Pak Total Debts: $130 Billion
USA Total Debts: $15 Trillion
China Total Debts: $1.3 Trillion
Pak External Debts: 67 Billion


3. Printing of Currency in Pakistan

Rs: 1.5 to 3 Billion/day
This much amount of printing leads to Inflation
Pak recent Inflation rate Almost 10.9%
Inflation in other countries: Zimbabwe worst effected
100 Billion Zimbabwe Dollars can buy only 3 eggs.


4. Remedies to Reduce Foreign Debts:

Tax Reforms
Rapid Economic Growth (i.e. 6% in 2008 and 2.4% GDP growth rate in 2012)
Foreign Investments
Promote Economist & Research Scholars
Eradicating Corruption

5. Mechanism to Handle External Perspectives of Pak Economy

Reduce Govt Expenditure
Stable basis for Growth
Getting of Roller Coster Economy
Reduce Balance of Payments
Promote Export
Reduce Imports
Expanding Trade Basis
Implementation of RGST
Proper Collection and Utilization of Public Finance
Promote Free Trade with Neighbors
Encourage FDI's
Foresightedness in Policy Making

6. Conclusion

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True knowledge exists in knowing that you know nothing. "Socrates"