The other factor is the bureaucratic over-reach with the support of the Elite formulating policies to suit their needs.
share.google
to import potatoes
The problem is not that Pakistan borrows. The problem is that Pakistan’s fiscal model has become increasingly dependent upon borrowing because the country taxes production more heavily than promoting it, measures success by annual revenue targets rather than sustainable wealth creation, and continues to treat economic growth as a consequence of taxation instead of recognising that in every successful economy taxation is ultimately a consequence of growth.Debt accumulation & failed fiscal model
The latest debt bulletin of the State Bank of Pakistan (SBP) confirms what many economists have feared for years. By...share.google
Pakistan’s FY27 budget, presented on June 12, allocated Rs8.054 trillion to interest payments. That is about 43% of the total outlay of Rs18.77 trillion, and the single largest head of expenditure in the budget. Of this, Rs6.983 trillion is owed on domestic debt and Rs1.071 trillion on foreign debt. Much of this interest does not leave the financial system. It returns to the commercial banks and other holders of government paper that now treat the state as their most reliable source of income. For all its language of transformation, the budget did little to disturb this arrangement.The banks' favourite borrower
Pakistan’s FY27 budget, presented on June 12, allocated Rs8.054 trillion to interest payments. That is about 43% of...share.google
BREAKING: Pakistan seeks to expand CPEC 2.0 into pharmaceuticals and biotechnology.
