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KARACHI: The Policy Research and Advisory Council (PRAC) has expressed serious concern about the budget’s failure to address core fiscal vulnerabilities.
“Debt servicing obligations budgeted at Rs8,054 billion constitute 68.5 per cent of net federal revenues, while unfunded pension liabilities have reached Rs1,169bn. These fixed obligations critically constrain fiscal space for development and social spending,” said the PRAC Chairman Younus Dagha.
He stressed that sustainable consolidation requires expenditure rationalisation, tax base expansion, pension reform, and the restructuring of loss-making state-owned enterprises — none of which are substantively addressed in the budgetary proposals.
The Public Sector Development Programme, capped at Rs1,000bn, also drew concern.
