Summary The locals would have to bear the burden through taxes in the future, say experts
ISLAMABAD (Dunya News) – Bulk of foreign loans has increased by USD 3.5 billion in the first six months of the Fiscal Year (FY) 2015-16, Dunya News reported Monday.
According to the State Bank of Pakistan (SBP), foreign loans have hit USD 68.50 billion during June-December 2015.
On the other hand, foreign exchange reserves have increased above USD 20 billion.
Experts have said that loans from different international organizations including International Monetary Fund (IMF) have helped better the economy for the time being however, in the future the locals would have to bear the burden through taxes.
Earlier on February 20, State Bank had stated that attractive schemes are needed to promote saving culture in the country.
The supreme bank stated that in order to attract people to open accounts in different banks, new saving schemes are needed to be introduced.
A report issued by the bank stated that Pakistan is lagging behind India, Sri Lanka and Bangladesh in saving structure as ratio has dropped by five percent since 2006. According to 2006 statistics, the ratio of total production to savings was 15 percent.
Report stated that the people would prefer to save money in bank accounts then buy gold if attractive schemes are offered. The bank cited government loans a big hindrance in the process.
