LHC hears plea over country's debt-to-GDP ratio
- By Web Desk -
- Jan 18, 2022
LAHORE: The Lahore High Court (LHC) has summoned Attorney General over a petition of the country’s borrowing with regard to the Gross Domestic Product (GDP), ARY News reported on Tuesday.
A bench of the high court also summoned details of the domestic as well as foreign debt of the country.
The court also asked if the public debt of the country is above the GDP.
The petitioner said that former finance minister Ishaq Dar had changed the definition of the GDP, which could not be re-defined otherwise.
The bench adjourned further hearing of the case until first week of February.
It is to be mentioned here that the debt-to-GDP ratio is the ratio of a country’s public debt in comparison to its gross domestic product.
A low debt-to-GDP ratio indicates a healthy economy that produces and sells sufficient goods and services to pay back its debt without further borrowing.