Pakistan’s fiscal deficit narrows to 22-year low of 2.6% of GDP in FY26: Schehzad
Pakistan’s fiscal deficit narrowed to 2.6% of gross domestic product (GDP) in the fiscal year 2025-26, its lowest level in more than two decades, said Adviser to the Finance Minister Khurram Schehzad. The deficit, which stood at 7.9% of GDP in FY22, has declined for three consecutive years, while the government recorded a primary surplus, before interest payments, of 2.9% of GDP in FY26, Schehzad said in a post on X on Thursday. He described the outcome as the strongest fiscal performance in 22 years. “Pakistan has closed FY2025-26 with a historic strengthening of its public finances — marking a decisive shift from recurring fiscal stress toward discipline, stability and sustainable growth,” said the adviser.