The Ministry of Finance has released its Monthly Economic Outlook Report, highlighting a notable increase in government spending and revenues, a narrowing budget deficit, and substantial growth in overseas remittances during the first ten months of the fiscal year 2024–25.
According to the report, government expenditure surged by 18%, reaching Rs12,948 billion from July to April. Despite the spending increase, the fiscal deficit narrowed to Rs3,689 billion, reflecting improved fiscal management and revenue performance.
The report noted a 26% rise in government revenues, driven by enhanced tax compliance and continued economic reforms. The Federal Board of Revenue (FBR) collected Rs11,136 billion in taxes as of May 31.
Remittances saw a robust 28.8% increase, contributing to a healthier external payments account, which remained in surplus. The ministry also revealed that nearly 60,000 Pakistanis went abroad for employment in May, boosting foreign inflows.
Despite global tensions, particularly the recent Iran-Israel conflict, inflation is projected to stay within 3% to 4% for June. The large-scale manufacturing (LSM) sector is also expected to see an uptick, led by rising activity in cement and construction industries.
The report reaffirmed the government’s commitment to structural reforms, especially the privatization of state-owned enterprises, as outlined in its agreement with the International Monetary Fund (IMF).
“Investor confidence has improved due to the IMF program and Pakistan’s upgraded credit rating,” the report stated.
The government disbursed Rs411 billion under the Benazir Income Support Programme (BISP) to provide relief to vulnerable communities. In May alone, interest-free loans worth Rs984 million were distributed to 18,525 individuals, promoting financial inclusion and poverty alleviation
