Open letter to Planning Minister

Honorable Minister, Mr Ahsan Iqbal, WHILE addressing the Annual Plan Coordination Committee (APCC) meeting on June 1, 2026, you rightly and unequivocally emphasized that “Pakistan’s economy should rely not on foreign loans but on its own resources.” This observation is both timely and pertinent, as it is widely recognized that excessive dependence on external borrowing can seriously undermine a nation’s prospects for sustainable long-term growth and development, particularly when debt levels become unmanageable or are not prudently managed. As you are aware, Pakistan’s total external debt and liabilities currently stand at approximately $138 billion. By mid-2026, the country finds itself grappling with a formidable debt burden, with debt servicing absorbing a substantial share of federal revenues. For the fiscal year 2025–26, debt servicing expenditures are projected to range between PKR 8.2 trillion and PKR 8.7 trillion, representing nearly half of the federal budget. This is far from an encouraging state of affairs; rather, it is a matter of grave concern that warrants urgent and sustained attention. “The country’s enormous and continuously rising external debt, coupled with the massive annual burden of debt servicing, is severely constraining Pakistan’s capacity to achieve sustained economic growth and development. There is an urgent need to reduce dependence on foreign borrowing if Pakistan is to attain lasting economic stability and bring meaningful progress and prosperity to its people. “ This vital national objective can be achieved by relying increasingly on self-generated resources through a substantial expansion of exports and a reduction in imports. Your invaluable observation that “Pakistan’s future hinges on taking its exports to record levels over the next ten years” is both timely and insightful. As you rightly noted, our development budget should be strategically utilized to strengthen export-oriented sectors, secure a meaningful place for Pakistan i