Revenue boost must to tackle foreign loan repayment burden: Planning adviser

Relying on foreign loans with stringent conditions for infrastructure-based development has increased the country's debt burden and will not lead to sustainable development, said Planning Adviser Wahiduddin Mahmud today (2 February.

"We have started realising it this year, although the issue has been discussed in previous years. The pressure of repaying both the principal and interest on foreign loans is increasing. Due to the mega projects undertaken by the previous government, the repayment burden will rise even further in the coming years.

"There is no alternative to increasing revenue to address this issue," he said while briefing reporters after the Executive Committee of the National Economic Council (Ecnec) meeting at the NEC conference room in the capital's Sher-e-Bangla Nagar.

The adviser further emphasised that the country's revenue collection, in proportion to GDP, was very low and managing the budget and overall economic system would become challenging without increasing revenue.

"The government needs to change the budget management approach. Instead of focusing solely on infrastructure development, more investment should be made in human resources. The government will prioritise this aspect in the revised budget for the current fiscal year," Wahiduddin said.