The policy brief argues that Pakistan’s debt crisis is fundamentally a consequence of weak economic growth, low domestic savings, limited exports, and institutional weaknesses rather than excessive borrowing alone. It emphasizes that sustainable debt management requires structural reforms that expand productive capacity instead of relying solely on fiscal austerity. Key recommendations include strengthening enforcement of the Fiscal Responsibility and Debt Limitation (FRDL) Act, improving tax collection, standardizing debt reporting, restructuring high-cost debt, and enhancing sovereign credit ratings. The brief also advocates gradually lowering interest rates, increasing affordable credit for productive sectors, expanding Special Economic Zones, promoting export-led industrialization, modernizing agriculture, and converting CPEC infrastructure into industrial growth. Strong coordination among government, industry, and academia, alongside transparent fiscal governance and long-term planning, is highlighted as essential for effective policymaking. Overall, the brief concludes that durable debt sustainability depends on credible institutions, export competitiveness, higher investment, and growth-oriented macroeconomic reforms that strengthen Pakistan’s long-term economic resilience.