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Pakistan Fiscal Performance (FY2025)
Comparison of actual performance against targets for key fiscal indicators.
Primary Sources
Pakistan's fiscal deficit falls to 9-year low, beating IMF, govt ...
By Staff Reporter KARACHI: Pakistan’s fiscal deficit narrowed to a nine-year low of 5.38% of gross domestic product in the fiscal year 2025, beating both government and International Monetary Fund projections, as a sharp rise in revenues outstripped expenditure growth. The deficit came in below the government’s revised forecast of 5.6% of GDP, down from an initial budget target of 5.9%, and the IMF’s estimate of 5.6%. Total revenues jumped 36% year-on-year, propelled by a 66% surge in non-tax revenues, while tax collections grew at a robust 26%. Meanwhile, total expenditures rose by a more modest 18%, reflecting a disciplined fiscal stance. Non-tax revenues were bolstered by a record dividend of Rs2.62 trillion from the State Bank of Pakistan, up from Rs970 billion in FY24. The central bank’s expanded balance sheet and higher interest rates fuelled this windfall, with its holdings of government securities delivering elevated returns. Tax revenues, led by the Federal Board of Revenue, climbed 26% to Rs12.9 trillion in FY25, a stark contrast to the Rs4.3 trillion collected in FY20. Over the past five years, FBR revenues, including the Petroleum Development Levy, have grown 3.02-fold, outpacing the 2.75-fold expansion in GDP, which rose from Rs41 trillion to Rs114.6 trillion over the same period. As a result, the FBR tax-to-GDP ratio, including PDL, hit 11.3% in FY25, a seven-year high, up from 9.7% in FY24 and an average of 9.9% over the prior five years. Analysts point out that the government has leaned heavily on the PDL, raising it significantly as a substitute for sales tax, possibly to retain more revenue rather than sharing it with provinces under the country’s fiscal framework. Pakistan posted a primary surplus, revenue minus expenditures excluding debt servicing, of 2.4% of GDP, the highest in over two decades. This figure exceeded the government’s revised projection of 2.2% and the IMF’s forecast of 2.1%, underscoring the strength of revenue growth relative to spending. The surplus highlights Islamabad’s ability to cover current obligations without additional borrowing, a critical measure of fiscal health. Debt servicing pressures also eased, with interest expenses dropping to 76% of FBR taxes in FY25 from 88% the previous year. This improvement stems from a modest 9% rise in interest costs, supported by lower interest rates following a period of monetary tightening. On the development front, Public Sector Development Program spending rose t...
𝗣𝗮𝗸𝗶𝘀𝘁𝗮𝗻 𝗥𝗲𝗰𝗼𝗿𝗱𝘀 𝗙𝗶𝗿𝘀𝘁-𝗘𝘃𝗲𝗿 𝗙𝗶𝘀𝗰𝗮𝗹 𝗗𝗲𝗳𝗶𝗰𝗶𝘁 𝗕𝗲𝗹𝗼𝘄 𝟭% Pakistan's fiscal ...
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Pakistan failed to achieve two major economic targets during the ...
Pakistan records its lowest fiscal deficit in 27 years, a development being closely watched by economists, investors, and international financial institutions ...
Pakistan records fiscal deficit below 1% for first time ever amid ...
KARACHI: Pakistan posted a fiscal deficit of less than 1 percent of its gross domestic product (GDP) between July 2025 and March 2026 for the first time in its history, an official said on Tuesday ...
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