UNDP sees debt management bigger challenge for new govt

The new government in Pakistan must have a plan to tackle the debt challenge, with a reform agenda enhancing financial management, increasing revenue, enforcing fiscal discipline, diversifying funding sources and effectively managing debt, suggests the United Nations Development Programme (UNDP). The UN agency’s latest publication — Development Advocate Pakistan — further suggests that parliament should provide regular oversight of treasury operations, and by putting these measures into action, Pakistan can work towards achieving fiscal sustainability, diminishing its dependency on external borrowing, and ultimately fostering economic stability and growth. Overall, it says, Pakistan’s options to resolve the ongoing debt crisis are very limited, adding that the country is likely to continue relying on short-term measures of rollovers, along with additional external borrowing to ease debt pressure.