Zafar Iqbal
The concerns raised by the National Assembly economic affairs committee reveal a deeper issue inside Pakistan’s fiscal culture, because the panel had to ask the government to explain something as basic as the definition of public debt, and this alone shows how far the country has moved away from honest fiscal reporting and responsible borrowing.
Republic Policy — Website The committee made a simple argument, and it stated that public debt must include all government borrowing, not selective parts chosen for convenience, because without full transparency no one can measure how much the state owes, how much it repays, and how much new borrowing is required just to keep the system functioning, and the lack of clarity also turns the idea of a primary surplus into a flexible term that can be interpreted in many ways.
Republic Policy — YouTube The committee highlighted that questions about the surplus and its role in debt retirement should have been answered long ago, and the fact that they are being raised now shows how long the system has avoided confronting the truth about borrowing, because Pakistan has normalised debt in official thinking, even though normalisation does not reduce the danger or the long term burden.
Republic Policy — X/Twitter Debt for investment is one kind of borrowing, debt to repay old debt is another, and debt taken only to service interest sits at the lowest point of financial responsibility, yet the committee suggested that government accounting practices often blur these differences, and this blurring makes it difficult for policymakers to understand the real limits of their economic decision making.
Republic Policy — Facebook The panel also examined the heavy taxation structure that in some sectors reaches almost sixty percent, and members warned that such fiscal pressure reduces competitiveness, discourages investment, and forces firms to relocate, and these are not distant risks but present realities in the economy, because when tax rates distort business decisions they weaken the revenue base that the state needs to finance its debt.
Republic Policy — TikTok The committee also reviewed foreign training programmes meant to build capacity in governance, finance, energy, and other sectors, and although these trainings seem removed from the debt debate, they relate directly to institutional competence, yet the selection data showed regional imbalances, raising concerns about fair representation and the need to ensure equal access to capacity building.
Republic Policy — Instagram Infrastructure issues also came under discussion, especially the Lyari Elevated Freight Corridor, and members argued that the project should be funded through the Public Sector Development Programme rather than a public private partnership, because they believed the PSDP offers more predictable financing, and they emphasised that the project is essential for national logistics rather than just a local improvement for Karachi.
Republic Policy — WhatsApp Channel All these discussions present a single picture of a state facing structural stresses but still unwilling to confront uncomfortable economic truths, and the committee’s insistence on redefining public debt is not a minor bureaucratic step but an essential move toward honest policy making, because a country so dependent on borrowing cannot afford the luxury of comforting illusions, and clarity is the first requirement for national financial stability.
