Pakistan’s current fiscal structure is deeply flawed, contributing to recurring economic crises and hindering sustainable growth, according to a recent analysis. The system relies heavily on unsustainable borrowing, particularly from commercial banks, rather than genuine revenue generation. Tax collection remains low, with a narrow base and widespread exemptions, while spending is often inflexible and dominated by debt servicing. This creates a cycle of borrowing to repay existing debts, leaving limited resources for essential public services like education and healthcare. Experts argue that fundamental reforms are needed, including broadening the tax base, improving tax administration, and increasing the efficiency of public spending. Without addressing these structural issues, Pakistan risks continued economic instability and dependence on external assistance. The article highlights the urgent need for a comprehensive overhaul of the nation’s financial framework to ensure long-term economic viability.