The Debt Origins | Pakistan Today

The Debt Origins

Mr. Z. A. Bhutto came to power in the age of control and regulations. He nationalized all private industries, banks, and big businesses, a decision that caused huge damage to the economy in the long run. Private sector was affected negatively, either marginalized or pushed back, giving way to inefficiency, entitlement, and corruption in government owned businesses. These state enterprises were ineffective and inefficient because employees had secure jobs with no sense of accountability or customer reactions. Most big industrialists closed their businesses and moved to other countries to invest their money. The institutions owned by the nationalized government were running in loss due to corruption and mismanagement. Due to malpractices and inefficiencies, the economy of the country eroded, and the government had to borrow heavily from various international sources. Since then, every government that assumed power, democratic or dictatorial, did not adopt a simple and parsimonious way of living with the aim to clear debt, but borrowed more to spend more in order to perpetuate their rule. The politicians who have ruled the country in one party or the other have not been able or willing to rid the country of debt trap.

Raja Shafaatullah