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Pakistan

Pakistan’s budget deficit falls as revenues rise

Budget deficit shrinks to 5.4% of GDP despite high debt payments

GNN Web Desk
Published 2 گھنٹے قبل on اگست 5 2025، 2:43 شام
By Web Desk
Pakistan’s budget deficit falls as revenues rise

Islamabad: Pakistan's annual budget deficit has reduced from 6.8% to 5.4% of the Gross Domestic Product (GDP), according to the Ministry of Finance. The ministry stated that interest payments for the previous fiscal year amounted to Rs8.887 trillion, while Rs2.194 trillion was spent on defense.

The Fiscal Operations Report for FY 2024–25, released by the federal Ministry of Finance, revealed that the total budget deficit for the previous fiscal year stood at Rs6.168 trillion, bringing it down to 5.4% of GDP from 6.8% the year before.

According to the report, total revenue collected was Rs17.997 trillion, while total expenditures amounted to Rs24.165 trillion. Total tax revenue stood at Rs12.722 trillion.

The Federal Board of Revenue (FBR) collected Rs11.744 trillion, while provinces collected Rs978 billion in taxes. Non-tax revenue amounted to Rs5.274 trillion. Current expenditures were reported at Rs21.528 trillion.

Interest payments alone cost the government Rs8.887 trillion, and Rs2.194 trillion was allocated for defense. The primary balance (excluding interest payments) was in surplus at Rs2.719 trillion.

Under the National Finance Commission (NFC) Award, Rs6.854 trillion was transferred to provinces.

In FY 2024–25, the government issued grants worth Rs1.514 trillion, subsidies amounting to Rs1.298 trillion, Rs911 billion for pensions, and Rs892 billion for government operations.

The report reflects efforts to curb the fiscal deficit amid high debt servicing and defense spending.

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