Austerity — an ineffective slogan

Despite repeated claims of “austerity” and “restructuring”, the federal government of Pakistan has failed to discipline its own spending. Instead of curbing wasteful outlays, non-development expenditures have continued to rise during the first four months of FY26, compounding already severe macroeconomic strains.

The cost of running the civil administration alone jumped by 13 per cent, reaching Rs161.2 billion in July–October 2025. Pension payments — a perennial fiscal black hole — have surged over 125pc in just five years...