One may question what is the rationale behind the exclusion of expenditure charged upon the Consolidated Fund from Parliamentary sanction in Pakistan? As pointed out earlier, under Articles 81 and 121 of the Constitution, all debt charges are part of the expenditure charged upon respective Consolidated Funds, but the Parliament and the respective provincial assemblies were divested of the power to vote upon…. How Constitutions Flourish or Fail by Mian Ashiq Hussain

In the just-ended 2025, due to structural impediments, lack of infrastructure and trained human resources, incompetence, inefficiencies, etc., the Federal Board of Revenue (FBR) and provincial tax agencies miserably failed to bridge the huge tax gap faced by the country. Making matters worse, the federal government could not reduce the burgeoning debt servicing and wasteful expenses. The fiscal mismanagement of federal and provincial governments since 2008 has been badly affecting the country’s economic landscape, as highlighted in various articles.

One of the results of perpetual political instability since April 9, 2022, in the wake of the first-ever successful vote of no confidence in the history of Pakistan, is the worst economic impasse in our 78-year existence. On the one hand, the federal government is trapped in deadly debt enslavement, and on the other, provinces—heavily dependent on transfers under the 7th National Finance Commission (NFC) Award—are receiving less than budgeted amounts due to the incompetence/failure of the FBR to meet even downwardly revised targets.

Pakistan’s Tax Crisis: Low Revenues, IMF Pressures, And The Failure Of Fiscal Policy

Provinces have also miserably failed to mobilise their own resources by not collecting due agricultural income tax from the rich absentee landowners and failing to introduce progressive taxes assigned/devolved in the wake of the Constitution (Eighteenth Amendment) Act 2010 [18th Amendment], which became effective on 19 April 2010. Their inaction on this account for over 15 years is highly lamentable.

In the existing scenario, the government, coming into power after manoeuvring/subverting the results of the general elections held on 8 February 2024, has been facing the most daunting challenge on the fiscal front—rebuilding the ruined economy due to unabated political instability and imprudent policies.

Prudent economic policies in 2026 are inevitable. These can be successful if formulated after professional input and public debate, eliciting the support of all stakeholders. Foremost, Pakistan needs the right path for higher sustainable growth with fiscal equilibrium. 2026 must be made the year of accelerated and sustainable growth, leading to inclusive development—ultimately achieving the much-desired and long-awaited goal of self-reliance with prosperity for........

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