While managing the domestic debt, the government has to decide how much it should borrow from banks and non-bank sources. Pakistan is currently caught in a debt trap. Making such decisions is not easy. Lots of trade-offs are made, each with an opportunity cost. This process keeps compounding the existing issues of domestic debt management and makes them even more complex for the future. Instruments of National Savings Schemes (NSS) provide the government with a relatively easy way of non-bank borrowings. But promoting NSS is not possible without paying savers a substantially higher return than they earn on saving products of banks. Banks do not like this idea. And, they use their extraordinary clout in the financial sector to block any move that makes NSS instruments substantially more lucrative than their savings products.