Lawmakers Urge Parliamentary Approval for All Foreign Debt Deals

Chairman of the National Assembly Standing Committee on Finance Syed Naveed Qamar has called for all foreign debt agreements to be ratified by Parliament, aiming to increase transparency and curb unchecked borrowing by the finance ministry. Syed Naveed Qamar, chairman of the National Assembly Standing Committee on Finance and a senior leader of the Pakistan People’s Party, said on Wednesday that the executive’s unrestricted authority to contract debt is a colonial-era legacy that should end. He proposed that Parliament begin by ratifying all foreign debt deals, a move he said would bring greater accountability to the country’s debt management. Qamar’s comments come amid growing concerns over the opacity of Pakistan’s external borrowing. The government has provided little public information on $12.7 billion in cash deposits and more than $7 billion in foreign commercial loans. “Parliament has a right to ask for information, and the provision of wrong information is punishable,” Qamar said at an event organized by Germany’s Friedrich-Ebert-Stiftung and the Sustainable Development Policy Institute. He also advocated for the continuation of Pakistan’s International Monetary Fund program, warning that abandoning it could be dangerous. “All limits have been crossed and now public representatives should play their roles effectively,” Qamar said, noting that public debt has become unsustainable and debt servicing costs are rising. Other experts at the event echoed calls for greater transparency. Former Planning Commission economist Zafarul Hasan urged the creation of an independent agency to report on all elements of public debt, while Khyber-Pakhtunkhwa adviser Muzammil Aslam said Pakistan needs a true definition of public debt, including pension and circular debt liabilities. Aslam cited World Bank data showing pension liabilities alone exceed Rs 50 trillion, while total public debt stands at Rs 80.5 trillion. Officials from the finance ministry said debt reporting and management have become more transparent, citing recent improvements to the government’s debt management strategy and auction calendar. However, participants at the event argued that timely and comprehensive reporting of external debt remains lacking.