Pakistan borrowed a record Rs1,272 billion in six months. The government celebrates this as success. This is madness dressed as policy.
The Economic Affairs Division data reveals the stark truth: loans and grants jumped 29% compared to last year, an increase exceeding Rs280 billion. Between July and December, Pakistan secured Rs1,254 billion in loans and a paltry Rs17.67 billion in grants. Non-project aid reached Rs785 billion, with Rs458.72 billion allocated for budgetary support. Project assistance totaled Rs487 billion.
Consider what this means. Saudi Arabia and the Islamic Development Bank together provided Rs307 billion for oil and other facilities. The IMF injected $1.2 billion. Another $1.2 billion came through Naya Pakistan Certificates. Total six-month inflows hit $5.7 billion. These are not investments in productivity or growth. These are life support payments to keep the patient breathing.
The government insists measures are in place to reduce the debt burden. This claim collapses under scrutiny. Pakistan’s current account slipped back into deficit in December, posting $244 million after a brief November surplus. The IMF projects economic growth at 3.2% for the current fiscal year, well below the government’s optimistic 4.2% target. Rising imports compound the external debt problem while cautious projections expose the fragility of our economic foundations.
We borrow to pay interest on previous borrowing. We borrow to maintain consumption rather than build capacity. We borrow because structural reforms remain politically unpalatable. The cycle continues, the debt compounds, the sovereignty erodes.
Record borrowing is not an achievement. It is a confession of failure. Until Pakistan addresses the fundamental question of why it must borrow at such rates, no amount of loans will stabilize the economy. The debt addiction must end. The reforms must begin. The alternative is economic collapse dressed in the language of managed decline.
