Although it’s a very difficult task for Pakistan to repay the foreign debt. Here we are not considering the domestic debt. So the following criteria in this regard are given below that how we can release the pressure of foreign debt from Pakistan.
• TAX REFORMS:
To reduce dependency on foreign borrowings, we have to introduce reforms in our taxation structure like broadening the tax base, transparacy, accountability, & withdrawal of the exemptions etc. In this respect government of Pakistan is already working with the technical & foreign assistance of IMF & World Bank but results are not satisfactory. For instance, according to survey report of FBR(Federal Board of Revenue),out of 10,000 registered shopkeepers of main markets of Islamabad, Lahore,& Karachi, hardly 3000 shopkeepers submitted & return.Abpara market just paid 2millionn rupees, Melody market 1.9million & Jinnah super market’s shopkeepers paid 2.2millioon rupees. Whereas, tax consultants are of the view that almost 5000 billion rupees can be collected from tax. So, if we succeed in collecting half of thus tax, we can make surplus amount to run country rather depending on foreign assistance.
• RAPID ECONOMIC GROWTH RATE:
Economic growth plays a vital role in the economy of any country. According to economic survey of Pakistan for the year 2009-10 by Dr.Hafeez sheikh, the advisor to the Prime Minister, the GDP (Gross Domestic Product) growth was projected at 4.1 percent higher than the targeted growth rate of 3.3 percent. If we succeed like China, Russia, India i.e. economic growth rate of almost 8 percent per annum, then our economic activity will cheer up &n we will get more revenues, our GDP will rise & unemployment will come down & we will be able to piled up foreign debts.
• FOREIGN INVESTEMENT:
One of the strategies to reduce foreign debt is to attract foreign investment as this has been done by China, Korea, Singapore etc....