The Structural Roots of Pakistan's Economic Problems; Tax, Debt & Circular Debt Crisis
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The Structural Roots of Pakistan’s Economic Problems; Tax, Debt & Circular Debt Crisis

Pakistan closed fiscal year 2025-26 collected almost Rs. 13 trillion in taxes which is a genuine improvement over prior years. Still it is nearly Rs. 978 billion short of the original target, even after the IMF agreed to lower it twice. Over the same time period, central government’s debt increased by more than 9% to Rs. 81.93 trillion by April 2026. These are not the numbers of a country experiencing a single crisis rather they are the numbers of a country whose economic problems have become structurally linked, each one reinforcing the next.
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