THE Debt Sustainability Analysis report for 2025-27 by the Ministry of Finance is out and it reveals that Pakistan’s public and guaranteed debt has surged to a record Rs74.6 trillion (around 70% of GDP) by the end of June. This reminds me of a scene from the movie Phir Hera Pheri (2006), where Paresh Rawal, playing the role of Babu Bhaiya, pleads with creditors for a postponement, saying, “Kam say kam 30 saal ka time to de re” (trans:”At least give us 30 years’ time”). This meme, which is considered one of the GOAT in digital pop culture, is more relevant than ever in the current macroeconomic situation —a situation comical in a movie but a grim reality for Pakistan.
Although Pakistan recently secured a rollover of $12 billion from friendly countries (i.e., Saudi Arabia, China, UAE) for a year, the crucial question remains: for how many more years? The problem is not the debt itself but the unabated audacity. The gross public debt, which was around $125 billion in 2011, has........