Pakistan Economy Updates

Fatman17

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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.
 

Fatman17

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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.
 

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Pakistan to begin horizontal drilling for shale gas in September in commercial production push​

Pakistan to begin horizontal drilling for shale gas in September in commercial production push

Cnergyico Pk Limited refinery plant at the Hub coast in Balochistan province, Pakistan March 18, 2026. (Reuters/File)
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  • Horizontal drilling at pilot well marks key step toward unlocking 135 TCF of shale gas in place
  • State-run OGDCL says commercial production could begin within five years, reducing LNG imports
Updated 09 July 2026.

A very critical project to move forward to self reliance.
 
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