Fiscal Deficit Falls to 2.6% of GDP, Aurangzeb Says
The fiscal deficit of Pakistan fell to 2.6% of GDP from a 12.5% peak, and tax revenues rose 40% over two years, Finance Minister Muhammad Aurangzeb said.
The fiscal deficit fell to 2.6% of GDP from a peak of 12.5%, Finance Minister Muhammad Aurangzeb said on October 14.
Tax revenues rose 40% over the past two years, and the tax-to-GDP ratio rose from about 8.5% to 10.3%.
The fiscal deficit reached a 22-year low in the last fiscal year, after three consecutive years of primary surpluses.
Debt-to-GDP fell from about 75% to 68%, and foreign exchange reserves now cover about three months of imports.
The minister said tax compliance remains a major challenge; the IMF mission left on October 7 after a staff-level agreement.