Pakistan's Debt Crisis Deepens: Public Debt Hits 70.7% of GDP, Exceeds Legal Limit

• Pakistan's public debt has surged to 70.7% of GDP, significantly surpassing the parliamentary limit of 56%.
• The government has borrowed 16.8 trillion Pakistani rupees more than the prescribed limit, indicating a lack of financial discipline.
• A deep structural weakness in governance leads to spending first, then borrowing to cover expenditures, often disregarding rules.
• Nearly half of the central budget is now allocated to debt and interest repayment, hindering development projects and increasing public tax burden.
• Despite claims of future financial discipline, FBR's revenue shortfall suggests economic difficulties may worsen without concrete reforms.