THIS is with reference to the report ‘Aurangzeb for deeper partnership with US’ (July 24), according to which, the finance minister discussed the possibility of securing $10 billion loan from the United States. One really wonders if more borrowing is the solution to the country’s economic predicament when we are up to our neck in debts already.

There are many questions agitating one’s mind. Will the loan lift the economy? Will it cut the staggering budget deficits? Will it improve exports? Will it curtail imports, especially the non-essential items, and trim the large trade deficit? Will it revolutionise Pakistan’s primitive agricultural practices and accelerate manufacturing as the country is facing de-industrialisation?

Will it alleviate water shortage, likely to become more acute after India’s withdrawal from the Indus Waters Treaty? Will it generate jobs and reduce poverty? Will it put a stop to government’s rising running expenditure and infuse real austerity in government spending? Will it improve the falling standard of education?

Will it stop the recurring cut in our development outlay? Will there be no further borrowing once the $10 billion facility is secured? With the serious dollar constraint, how will we pay back this loan when we seek roll-overs all the time?

It is high time we reduced reliance on external sources as the dependence has reached an unsustainable level. We have repeatedly been to international lenders and borrowed heavily. It has not improved our economic wellbeing. There exists no medium-term or long-term plan.

Key economic decisions continue to be taken on an ad-hoc basis. The concept of coherent planning has altogether disappeared from our minds, it seems.

Arif Majeed
Karachi

Published in Dawn, August 8th, 2026