The government provided subsidies of about Rs 2.35 trillion ($8.4 bllion) last year to the rich and entitled. They exceed the entire federal development budget. In a single year, Pakistan gives away more in tax exemptions than it borrows from the IMF over three years.
The budget fails to address the most critical fiscal question: what is the government doing to reduce the debt burden?
Most analysts focus on headline deficits and tax collections, but pay far less attention to how federal revenues are actually allocated. This table provides a clearer picture by showing net federal revenues—tax and non-tax revenues after transfers to provinces—and comparing them with interest payments on debt and defence spending (including military pensions).
The numbers highlight the scale of the problem. Net federal revenues rose from Rs 2.2 trillion in FY2013-14 to Rs 10.8 trillion in FY2024-25, but interest payments surged even faster—from Rs 1.2 trillion to Rs 8.9 trillion. As a result, after paying for debt servicing and defence, the federal government moved from a surplus of Rs 224 billion in FY2013-14 to deficits that peaked at nearly Rs 3.0 trillion in FY2023-24. In that year, interest payments alone (Rs 8.2 trillion) exceeded total net federal revenues (Rs 7.6 trillion), meaning every rupee of net revenue was absorbed by debt servicing before a single rupee was spent on defence, development, or the civil government.
The projected turnaround in FY2025-26—a surplus of Rs 1.6 trillion after interest and defence costs—is driven primarily by a sharp decline in debt-servicing costs, not by any fundamental change in spending priorities.
The lesson is clear: Pakistan's fiscal crisis has been, above all, a debt crisis. For much of the past decade, the federal budget's principal function was servicing accumulated debt. Sustained fiscal improvement will therefore depend less on cutting development spending and more on managing and reducing the debt burden itself.
Think about this: The government provided subsidies of about Rs 2.35 trillion ($8.4 bllion) https://t.co/kTgxEVzh0O last year to the rich and entitled. They exceed the entire federal development budget. They are larger than Pakistan’s annual spending on health and education combined. In a single year, Pakistan gives away more in tax exemptions than it borrows from the IMF over three years.
The Salaried Class as an ATM: Despite slight downward tweaks in the tax brackets (e.g., dropping the maximum rate for the Rs 2.2M–3.2M bracket from 23% to 20%), the salaried class remains the FBR's easiest, captive target.
A documented professional in Pakistan pays significantly higher effective tax rates than their regional counterparts, while a millionaire wholesaler in the informal sector pays next to nothing. The documented workforce is effectively carrying a 40% undocumented shadow economy on its back.
you may be doing your job but the ethics of how you’re doing it matter most!! publicly humiliating staff and managers who are just doing their jobs and recording it for social media at the restaurant is simply display of power and unnecessary drama!!
coduct these meetings inside the office. use your inspection and assessment process to hold the owners accountable and seal the restaurant if it fails to meet standards!!
@nadeemhaque Yet academics in this country have not produced anything original since independence and have zero contribution to intellectual thought. In fact VCs and academics play more politics than the politicians.