KARACHI: Pakistan raised over Rs24 trillion through government borrowing and higher revenues in the last two and a half years, but economic growth remained sluggish. Official data from the State Bank of Pakistan shows the government borrowed Rs8.519 trillion from banks in FY24, Rs5.434 trillion in FY25, and Rs2.1 trillion in the first seven months of FY26. Total bank borrowing reached Rs16 trillion, nearly half of Pakistan's total government debt stock of Rs32.3 trillion by June 2025. During this period, government revenues nearly doubled from Rs9.6 trillion to nearly Rs18 trillion. Despite this impressive liquidity, growth failed to pick up due to what some reports call "policy failure or misdirected spending." Bank lending to the private sector was drastically reduced, totaling only Rs2.2 trillion over the same period. This limited credit supply has held back business activity and industry. The State Bank's GDP growth target for FY26 is between 3.7% and 4.7%. It currently expects growth around the lower end, 3.7%. Inflation is low at 5.6%, but the central bank has not cut interest rates to boost credit flow to firms. The only recent help for exporters was a refinancing rate reduction, which has not significantly improved exports. Industry leaders have called for interest rates aligned with inflation, but policymakers are content with steady yet low growth. Low economic growth has worsened poverty, now affecting 46% of the population. Unemployment and poverty continue to rise, with the government lacking a clear plan to tackle these pressing issues. Much of the relief comes from charity rather than policy measures. Published in Dawn, February 7th, 2026.