Pakistan is facing a looming sovereign default due to a current account deficit of $74.5 billion, which has been financed by borrowing $65 billion since foreign investment does not cover the external deficit. To combat this, the government must undertake significant reforms to address economic weaknesses and stabilize the economy, including increasing revenue collection by broadening the tax base and improving tax administration. Pakistan's tax-to-GDP ratio remains one of the lowest in the region, and the government should prioritize revenue collection and reducing non-essential spending, such as its large defence and subsidy budgets. Pakistan needs to promote export-oriented growth, including enhancing productivity, streamlining business procedures, and creating policies that promote exports and foster entrepreneurship. To avoid default, the government should engage with international financial institutions to restructure debt obligations and ease the burden of interest payments. While the road ahead may be difficult, policymakers must prioritize long-term economic stability and growth for the benefit of all Pakistanis, including investing in renewable energy sources, infrastructure, education, and training, and promoting innovation and entrepreneurship.