Pakistan, June 20 -- ISLAMABAD - The government has warned in a report submitted to Parliament that next year's budget faces several serious economic and financial risks. These include slow economic growth, rising inflation, and an increasing debt burden.

The report highlights key challenges such as below-target GDP growth, sudden inflation spikes, exchange rate fluctuations, declining revenues, rising debt payments, poor performance of state-owned enterprises (SOEs), and unexpected natural disasters. Finance Minister Muhammad Aurangzeb and Secretary Finance Imdadullah Bosal divided these risks into seven categories and assessed their possible financial impact.

The report explains that a one percent drop in GDP growth could reduce tax r...