Pakistani Government Borrows Trillions Despite Increased Revenue

The Pakistani government borrowed PKR 3.2 trillion from banks between May 15 and June 28, 2023, averaging PKR 71.8 billion per day. Despite a 30% revenue increase, high spending led to record borrowing of PKR 8.564 trillion for FY24. The government aims to boost revenue by 40% next year through higher taxes but continues to spend heavily. High interest rates and reduced private sector borrowing have strained the economy, limiting growth to 2.38%. The government targets 3.5% growth for FY25 but faces challenges due to debt and economic slowdown.