At the close of 2024, Pakistan\u2019s public debt crossed a historic Rs74 trillion, according to a debt bulletin by the Finance Ministry, meaning that in just six months, we borrowed 10 per cent more than we already had. These are numbers that belong in balance sheets but their impact is anything but abstract. A child out of school or a business shuttered because credit dried up.
\nAbout two-thirds of this debt is domestic. That means we\u2019re borrowing heavily from within: banks, pension funds, and savings institutions.
\nOn the face of it, domestic borrowing insulates us from volatile international markets. But it also means we\u2019re crowding out private investment and directing more of our limited resources toward interest payments, rather than toward roads, energy, or education. The other third \u2013 our external debt \u2013 keeps us at the mercy of exchange rate shocks and the decisions of rating agencies and lenders in Washington and Beijing.
\nAnd yet, there are glimmers \u2013 however faint \u2013 of better management. The government posted a primary surplus of 2.9 percent of GDP. The rupee has shown signs of stability. Global rating agencies like Fitch and Moody\u2019s have softened their outlook. For once, Pakistan is not in immediate danger of default.
\nBut let\u2019s not confuse survival with success.
\nThis apparent fiscal discipline has come at a high cost: slashed development budgets, rising indirect taxes, and a squeeze on middle- and low-income households already reeling from inflation. Behind every positive number is a very human tradeoff. The real issue isn\u2019t debt alone. It\u2019s the economy\u2019s inability to grow in ways that include the many, not just the few. It\u2019s the chronic under-taxation of powerful sectors.
\nDebt is not inherently bad. What matters is what we do with it. Are we borrowing to build, to educate, and to generate long-term productivity? Or are we just buying time?
\nPakistan doesn\u2019t just need belt-tightening. It needs boldness. And it needs leadership that treats debt not as a storm to ride out, but as a wake-up call to finally change course. <\/p>\n","protected":false},"excerpt":{"rendered":"
At the close of 2024, Pakistan\u2019s public debt crossed a historic Rs74 trillion, according to a debt bulletin by the Finance Ministry, meaning that in just six months, we borrowed 10 per cent more than we already had. These are numbers that belong in balance sheets but their impact is anything but abstract. A child […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":{"0":"post-470214","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-editorial"},"yoast_head":"\n