The Pakistani government's borrowing from banks surged to Rs5.9 trillion in FY26, averaging Rs500 billion monthly, compared to Rs5.4 trillion in FY25. This aggressive borrowing has swelled domestic debt, with projections indicating that debt servicing will consume 50% of the total budget outlay in FY27, amounting to Rs8 trillion. This persistent reliance on borrowing for government affairs and debt servicing could intensify inflationary pressures and exert further depreciation pressure on the Pakistani Rupee.
بحوالہ / Source: www.dawn.com