Government is Planning to Borrow Rs34.6 Trillion?
Despite dire fiscal conditions, allocations for state organs surge by up to 63%.
Saad khan 
Islamabad: In a crucial development on Tuesday, Finance Minister Muhammad Aurangzeb tabled a bill in the National Assembly (NA), seeking approval for a substantial Rs34.6 trillion borrowing plan. This move aims to address the pressing needs of debt servicing and vital state institutions, despite grappling with severe economic challenges.
The proposed borrowing includes allocations for critical constitutional bodies like the President of Pakistan, Supreme Court, NA, Senate, and other state organs, all of which have seen budget increases ranging from 22% to 63%. These expenditures, considered mandatory under constitutional obligations, do not require parliamentary voting.
According to detailed documents presented to the NA, around Rs710 billion has been allocated for essential expenditures, covering key entities such as the Election Commission of Pakistan, Islamabad High Court, and Federal Tax Ombudsman, among others.
The largest portion of the borrowing, totaling Rs33.8 trillion, is designated for debt repayment and interest costs, reflecting the government's strategy amidst challenging economic conditions marked by currency devaluation and record-high interest rates.
Despite efforts to reduce borrowing needs compared to previous fiscal years by opting for longer-term financing instruments, interest payments remain a significant burden, consuming approximately 52% of the proposed Rs18.9 trillion budget for the upcoming fiscal year.
The bill also highlights increased allocations to the NA, Senate, and President's Office, signaling continued financial pressure amid rising economic uncertainties.
The request for Rs34.6 trillion in borrowing underscores the government's commitment to managing fiscal responsibilities while navigating a complex economic landscape. The NA will deliberate on the bill in subsequent sessions, reflecting ongoing challenges and the government's approach to financial management amidst economic instability.
