Pakistan, March 31 -- At the close of 2024, Pakistan's public debt crossed a historic Rs74 trillion, according to a debt bulletin by the Finance Ministry, meaning that in just six months, we borrowed 10 per cent more than we already had. These are numbers that belong in balance sheets but their impact is anything but abstract. A child out of school or a business shuttered because credit dried up.

About two-thirds of this debt is domestic. That means we're borrowing heavily from within: banks, pension funds, and savings institutions.

On the face of it, domestic borrowing insulates us from volatile international markets. But it also means we're crowding out private investment and directing more of our limited resources toward interest pay...