Will provinces shoulder Pakistan’s debt burden?

As we finalise the details of the next International Monetary Fund (IMF) facility to secure economic stability, pertinent questions and concerns arise. IMF support is vital for the country to address internal challenges and chart its path to prosperity. Amidst this, various discussions are emerging, stirring political scrutiny. A significant issue at hand is ensuring the federal government’s financial sustainability. Predictably, given the high interest rates, almost all tax revenues are diverted to servicing loan “interest,” making us net borrowers from day one and exacerbating bankruptcy. Inaction is simply not viable. Major decisions are imperative to halt this drain on resources. The current political landscape intertwines long-standing political dynasties, obliging them to safeguard both their own interests and the state’s simultaneously. Debates regarding the National Finance Commission (NFC) award and wealth distribution between the federal and provincial levels are entirely justified.