New Delhi, May 5 : Pakistan is perhaps the only country in the world where individual debt has become the nationâ??s burden as those who borrow do not pay back and loan write-offs are common together with defaults, according to a new report.

Then there are kickback projects which are built on borrowed money with no framework for payback. IMF has recently observed that there is no check on government spending, says the report in Business Recorder.

â??There is no parliamentary oversight or debate; only rules of procurement are defined need assessment, and loan retirement is not considered,â?? it adds.

Till October 1958, Pakistan was debt free. Today, the republic is mired under debt. Only the external component is around $140 billion.

â??The entire federal budget is consumed by debt servicing and defence expenditure. There is no money left to run the glutinous non-performing state apparatus,â?? the report laments.

Under the National Finance Commission (NFC) award, a major portion of tax money is transferred to the provinces.

â??Even IMF (International Monetary Fund) the lender of choice has started imposing conditionalities before releasing funds. Loan yes leaving alone no, it is indeed getting serious now,â?? the report mentions.

Debt is a major fault line for the country that needs to be corrected. Driving luxury automobiles on borrowed money is, indeed, shameful.

â??The choice is between moratorium and default or a combination of both but business as usual cannot continue. There should be a parliamentary committee for debt control,â?? the report says.

All future borrowing should be stopped in the next budget starting July 1, 2026.

A five-year suspension of interest payments should be negotiated with the lenders. Balance of payment must be achieved. The import and export bills must be lumped together and tracked. There must be a massive cut in state expenses, it adds.

/IANS