The IMF predicts a gradual fall in Pakistan’s debt and fiscal deficit.

Over the next five years, Pakistan’s debt and fiscal deficit are expected to gradually decrease, according to the International Monetary Fund (IMF).

The IMF’s Fiscal Monitor Report 2025 projects that Pakistan’s debt-to-GDP ratio would decrease from 71.6% this year to 71.3% next year. Over the next five years, this ratio is predicted to drop even more, to 60.2%.

This year, the budget deficit is expected to surpass the official target of 3.9% of GDP, reaching 4.1%. But over the course of five years, it is anticipated to gradually decline to 2.8%.

This year, the main balance is predicted to be 2.5%, which is little higher than the 2.4% goal. The primary balance might be limited to 2% in the upcoming fiscal year.

In the current fiscal year, government spending is expected to account for 20.4% of GDP; next year, it is anticipated to drop to 19.6%.

It is projected that Pakistan’s revenue-to-GDP ratio will increase from 15.7% in the previous fiscal year to 16.2% this year.