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KARACHI: Senate Chairman Mian Raza Rabbani said on Tuesday foreign loans come with strings as lenders’ conditions infringe upon national sovereignty.
If a nation has a choice, then it should opt for increasing exports by promoting the indigenous industry and making it competitive, he said while addressing the 41st Export Awards ceremony of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
“I’d suggest that if we have a choice between exports and foreign loans, then we should go for the former in order to safeguard our sovereignty,” he maintained.
He said it was easy to get foreign loans. But when the payback time comes, it is always difficult to dish out funds to even pay the interest, leave alone the principle, out of scarce resources, he said.
Mr Rabbani said global lenders always impose conditions that infringe upon national sovereignty. They also try to influence the system, he said, adding that countries like Pakistan give away a portion of their sovereignty in the process.
Responding to the issue of the Engineering Development Board (EDB) raised by business leader Iftikhar Ali Malik, the Senate chairman said he would ask the relevant standing committee of the upper house to take it up with the government.
Mr Malik complained that the government has made the EDB ineffective, hurting local auto vendors. He suggested that the government should promote import substitution and encourage balancing, modernisation and renovation of sick industries.
FPCCI President Zubair Tufail expressed his concerns about the widening trade gap, saying Pakistan exported goods worth $20 billion against imports of $52bn in the last fiscal year. This situation is likely to deteriorate further because imports are expected to swell to $60bn by June 30, 2018 while exports cannot be more than $24bn, he added.
FPCCI former president S.M. Muneer said the balance of trade would not improve unless Pakistani exporters get a level playing field. He said the high cost of doing business has crippled the country’s export sector and made industrial activity unviable.
Published in Dawn, December 27th, 2017
Comments (22) Closed
The Senate Chairman of Pakistan is right.
mr. raza rabani is good politician nd he is totally right he narrated.
Foreign loans are sign of friendship
Don't take loans.
Very rightly chairman sanete has painted the picture of country's sovereignty infringement.having the compete understanding about the ills of country by all chiefs of institution then why all are coughing up to do knife surgery than letting it go to be dagger done surgery.
Mr. Rabbani, When did this light bulb went off in your head? All of a sudden you are talking about not taking orders from Super Powers, and now loans from foreign governments compromising Pakistan's sovereignty. Sir, with due respect you have been part of this practice (via the party you belong too) one way or the other, but never did anything about it. Chameleons change color but not their pedigree.
Mr. Rabbani, you sure do always sound "sincere", however, what negates your sincerity is your continued support for a crook like Mr. Asif Zardari.
Took you 30 years to realize that. We tripled foreign loans under PPP governments.
What about 50 Billion Dollar CPEC Loan?
‘Foreign loans compromise sovereignty,' says Rabbani ... you all did not think of it when you were taking loans left and right and where the money went to private banks in offshore accounts... Maybe you never knew that beggars are never the choosers.. Folks..National sovereignty is an obligation as well as an entitlement. A government that will not perform the role of a government forfeits the rights of a government. Talk about sovereignty,
CPEC is an exception?
Rabbani is right. I also wish our business leaders would show some backbone and learn to compete internationally. Instead of looking for government subsidies, let them improve their product offerings. The auto sector is in fact a glaring example of where the government has been protecting the local manufacturers at the expense of the consumers. The manufacturers continue to sell sub par automobiles at exorbitant rates. There is no competition from imports and no effort to increase the domestic content of the end product. Why is this ok?
CPEC is a disaster in that it is also a loan funded project. Would we be able to pay it back?
Instead of giving heart warming speeches, make policy and pass laws in the parliament for economic expansion in the country.
PPP & now pmln have broken all records of loans ...
What is unknown or rather hidden is the fact that the major portion of our imports is under invoiced thus making the figures for imports completely unreliable. The actual import bill would be almost double the figure of one hundred twenty billion dollars by the end of the current fiscal year. As a minimum.
The nations who are dependent on loans and aid cannot be completely sovereign countries. These days, even USA is beholden to China because China owns huge amount of US treasury bonds. Pakistan needs corruption free political system and comprehensive planning to make strides towards national sovereignty. It is good that Senator Raza Rabbani cares about sovereignty and the self esteem of the nation.
Who in Pakistan would Pakistan borrow from? Pakistan can sell only x number of bonds. There is a limit. The government should sell treasury bonds to the Pakistan people.
Where will the Pakistan government borrow money inside Pakistan? There is a limit to how many new bond issues Pakistan can sell in the international money markets.
@TKHAN ... One person on the Opinion pages here wrote that the employees of Radio Pakistan are not being paid their salaries. The fact is that the country is out of money and must keep borrowing to pay expenses because it cannot collect taxes.
@Asif A. Shah US has not "borrowed" from China. China had no option but to put money in US Treasuries. Eg State Bank of Pakistan does not "borrow" from people. People willingly deposit their savings etc in SBP for safekeeping. Also all of China's savings are in US dollars. Whoever owns the currency can sleep easy. China has more to worry about its deposits in US. Theoretically US can declare a freeze on any sovereign deposits and not much anyone can do about it.
He should pass a law in the country if anybody I mean even military or judges, steal or take bribe will be locked up for 10 years and take all there assets away. All these political speeches are great it does not help Pakistan.