Customs Today
  • Home
  • Islamabad
  • Karachi
  • Lahore
  • National
  • Transfers and Postings
  • Chambers & Associations
  • Business
No Result
View All Result
Customs Today
  • Home
  • Islamabad
  • Karachi
  • Lahore
  • National
  • Transfers and Postings
  • Chambers & Associations
  • Business
No Result
View All Result
Customs Today
No Result
View All Result
Home Op-Ed Editorial

Case of unutilized loan

byDr. Aftab Afzal
22/03/2017
in Editorial, Latest News, Op-Ed
Share on FacebookShare on Twitter

The country is drastically in need of capacity building programmes for the bureaucracy and others who work in various organs of the government to face new challenges and situations as an emerging economy. Pakistan is passing through a transitionary period and not only its social structure and traditional values are changing, but trends of trade, business and economy are also passing through a critical process. However, the bureaucratic machinery is either incapable of understanding the new requirements of the changing world or it is reluctant to leave the colonial legacy of redtapism. Unfortunately, the bureaucratic cadre is still not willing to rid itself of the rigid conformity to the colonial rules which have no place in the modern government structure and are the things of the past. Sticking to the redundant bureaucratic rules seems to be a big hindrance in the way of decision-making. The latest example of incapacity of the government is its promptness to acquire $6.4 billion loan from the Asian Development Bank, but failed to utilize it in proper manners. Newspaper reports suggest the government could utilize only $1.8 billion and rest of $4.6 billion, which is around three-fourths of the total loan, is still unutilized and the nation has to pay extra charges as demurrage.

The loan was acquired for various developmental projects, but the allocation of the money is facing not only bureaucratic hindrances, but also difficulties in compliance of the complex requirements of the bank. As a result, nation is paying 0.15 percent as commitment charges on the unutilized loan. The bureaucracy is not responsible for the financial chaos alone, but the inability of the political leadership is also an equal partner in the matter. If the country lacks a full time finance minister, it also lacks a crew of politicians having modern visions and understanding. China has swiftly shifted its economy from communism to liberalism and secured high rate of progress within years. Pakistani leadership is still groping in the dark and is taking extra time to understand the emerging situation. The ADP issue is a tip of the iceberg as hundreds of other projects are waiting the government funding and are lying in limbos. If the bureaucracy needs refresher courses, the financial sector also needs reforms. The State Bank of Pakistan as the reserve bank is also facing bureaucratic rigmarole and is always seemed to be behind the schedule in decision making.

You might also like

stack of one hundred dollars notes on dollars background

Pakistan’s foreign currency deposits increase by $31m in September 2026

14/10/2026

Pakistan’s car sales rise 19pc in first quarter of FY27, decline 12pc in September 2026

14/10/2026

It is the duty of the political leadership to guide the official machinery as well as common citizens. If political leadership is incapable, it looks towards bureaucracy for advice on every matter of national importance and unending process of redtapism starts.

Related Stories

stack of one hundred dollars notes on dollars background

Pakistan’s foreign currency deposits increase by $31m in September 2026

byCT Report
14/10/2026

KARACHI: Foreign currency deposits in Pakistan increased by $31.31 million, or 0.45%, to $6.966 billion in September 2026 from $6.935...

Pakistan’s car sales rise 19pc in first quarter of FY27, decline 12pc in September 2026

byCT Report
14/10/2026

KARACHI: Pakistan's car sales increased 19% year-on-year (YoY) to 50,480 units during the first quarter of FY27, despite declining 12%...

LHC rejects delayed tax references filed by FBR & govt bodies

byCT Report
14/10/2026

LAHORE: The Lahore High Court (LHC) has declared all tax reference applications filed after the prescribed time limit inadmissible, ruling...

Pakistan seeks international investment through digital finance, says Bilal bin Saqib

byCT Report
14/10/2026

ISLAMABAD: Pakistan is focusing on expanding international investment opportunities by adopting modern financial technologies and contributing to the development of...

Next Post

Dy Commissioner-IR Farva promoted to BS-18

  • Terms and Conditions
  • Disclaimer

© 2011 Customs Today -World's first newspaper on customs. Customs Today.

No Result
View All Result
  • Transfers and Postings
  • Latest News
  • Karachi
  • Islamabad
  • Lahore
  • National
  • Chambers & Associations
  • Business
  • About Us

© 2011 Customs Today -World's first newspaper on customs. Customs Today.