World
Pakistan’s FY26 Fiscal Deficit Slips to 1.6% of GDP Amid Public Debt of Rs83.29 Trillion, Raising Sustainability Concerns.
Pakistan’s fiscal deficit for the first 11 months of FY26 narrowed to 1.6% of GDP, yet the country’s debt has reached a staggering Rs83.29 trillion. The International Monetary Fund projects a 3.2% deficit for FY27, while the Federal Board of Revenue missed its tax target by Rs975 billion. The energy sector’s capacity payments, circular debt, and Canada–Pakistan Economic Corridor (CPEC) related claims are key drivers of fiscal stress.
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