Pakistan projected to post 21-year low budget deficit in outgoing FY26

Pakistan is projected to post a 21-year low budget deficit of 3.6% of GDP (gross domestic product) in the outgoing fiscal year 2025-26 (FY26), showing the government is maintaining a tight fiscal discipline under the ongoing International Monetary Fund (IMF) progrmme, according to a local research house. The deficit stood at 5.4% of GDP in the previous year FY25. “The significant improvement in fiscal balance is [expected] on the back of restrictive fiscal policy adapted by the government under the IMF programme with control over growth in expenditures and decent growth in total revenues (including both tax and non tax revenues),” Topline Securities said in brief comment on Tuesday.