Pakistan today is not merely facing an economic slowdown; it is confronting a dangerous economic direction. The federal government’s total public debt has reached nearly Rs. 78,529 billion — a figure so enormous that it restricts fiscal independence and weakens national decision-making. A major portion of national revenue is now consumed in debt servicing alone, leaving very limited space for health, education, infrastructure and social welfare. Out of this debt, around Rs. 47,000 billion are domestic loans taken from local financial institutions, while approximately Rs. 31,000 billion are foreign borrowings. This means that before development spending even begins, a significant share of revenue is already committed to repayments.

The most serious question therefore arises:
Where has Rs. 78,000 billion been spent?

If such massive borrowing had been invested in productive sectors — irrigation projects, industrial expansion, agriculture modernization, livestock development, research, technology and export promotion — Pakistan would have witnessed visible economic transformation. Employment opportunities would have increased, exports would have strengthened and the standard of living of the common man would have improved. Unfortunately, industries are closing, businesses are relocating and skilled professionals are leaving the country in record numbers.

An even more uncomfortable question must also be asked: What have the financial experts of successive governments over the past 78 years actually achieved? For decades, economic managers, advisors and technocrats have held powerful positions, negotiated international loans and designed fiscal frameworks. If the outcome of these policies is mounting debt, repeated bailouts and continuous financial instability, then accountability cannot remain selective. Why was their persistent inability not properly examined? Why were structural weaknesses not corrected? Why does the same cycle of borrowing, devaluation and austerity repeat every few years?

Because of these repeated policy failures, the consequences are no longer abstract figures in economic reports — they have become personal burdens. When the total national debt is distributed across the population, every citizen of Pakistan is effectively under a loan of approximately Rs. 300,000. Even a newborn child enters this world already carrying a financial liability.

The citizens did not negotiate these loans, nor did they decide their utilization, yet they are forced to repay them through higher taxes, inflation, increased electricity bills and declining public services.

This silent transfer of responsibility from governments to people is economically unjust and morally alarming.

Even more concerning is the recent trend. Within just 22 months, approximately Rs. 13,710 billion in additional loans have been taken — nearly Rs. 623 billion per month. This clearly shows that the fiscal system is not stabilizing; it remains dependent on borrowing to sustain routine governance.

At the same time, more than 25 state-owned organizations are operating at collective losses of around Rs. 832 billion annually, which translates into nearly Rs. 2.3 billion every single day. Reportedly, these losses increased from Rs. 30.5 billion in 2024 to Rs. 123 billion in 2025, almost a 300% rise within one year.

Such escalation reflects structural inefficiency rather than temporary economic difficulty.
Strangely, despite this grave financial situation, the federal government reportedly released Rs. 45 billion to its own party Members of the National Assembly — approximately Rs. 225 million per member. At the same time, the Government of Punjab purchased a luxury aircraft worth nearly Rs. 11 billion from taxpayers’ money for official use. What a striking contrast. On one side, the nation struggles under record debt, inflation and rising electricity tariffs; on the other side, public funds are distributed among ruling party members and spent on elite comfort. When every citizen is effectively burdened with a debt of around Rs. 300,000, such decisions raise serious questions about fiscal priorities, political ethics and sensitivity toward the economic suffering of ordinary people.

Whereas an amount of nearly Rs. 56 billion — spent in these decisions — could have been more than sufficient to initiate meaningful reforms in Pakistan’s struggling health and education sectors. Many public hospitals lack basic diagnostic facilities, essential medicines and trained staff, while numerous government schools operate without laboratories, teachers and even proper buildings. Redirecting such public funds toward human development could improve literacy, healthcare access and workforce productivity. The real strength of a nation is not measured by the comfort of its rulers, but by the wellbeing of its people.

Under these circumstances, sustainability becomes a serious concern. No economy can progress when borrowing replaces productivity and inefficiency replaces reform.

The way forward is clear. Pakistan must:
Prioritize exports over imports
Revive agriculture and livestock sectors
Promote manufacturing and value-added production
Restructure or privatize loss-making state enterprises
Broaden the tax base instead of overburdening compliant taxpayers
Ensure transparent and performance-based accountability of economic managers
Pakistan possesses fertile land, natural resources, a strategic geographical position and a young workforce. The crisis is not of potential — it is of governance and direction.
If borrowing continues to finance inefficiency, the burden will keep shifting onto the common citizen through inflation, unemployment and rising living costs. Economic sovereignty cannot be preserved through continuous loans. It can only be achieved through production, exports, fiscal discipline and institutional accountability.

The ultimate question that now confronts every Pakistani is: From where will the leadership emerge that has the vision, courage, and integrity to correct these decades of mismanagement? Who will step forward to hold the powerful accountable, stop reckless borrowing, restructure loss-making institutions, and prioritize the welfare of citizens over personal or political gains?

The nation cannot afford empty promises or cosmetic reforms. What Pakistan urgently needs is principled, competent and decisive leadership that restores accountability, enforces fiscal discipline and invests in human development.

Pakistan still has time — but not unlimited time. If corrective measures are delayed, future generations will not inherit prosperity; they will inherit repayments. The responsibility before policymakers today is not only economic — it is moral, national and historical.

Dr. Alamdar Hussain Malik
Advisor, Veterinary Sciences
University of Veterinary and Animal Sciences, Swat
Former Financial Adviser
Finance Division
Government of Pakistan