Islamabad, June 9, 2025 – The Economic Survey of Pakistan for the fiscal year 2024-25 reveals continued progress in fiscal consolidation, driven by robust revenue mobilization, improved expenditure discipline, and coordinated efforts between federal and provincial governments.
According to the economic survey, Pakistan’s fiscal indicators have been on a consistently improving path over the past three years, with marked improvements observed in the current fiscal year. The fiscal deficit decreased significantly to 2.6% of GDP during July–March FY 2025, down from 3.7% in the same period of the previous year. In parallel, the primary surplus expanded to Rs 3,468.7 billion (3.0% of GDP), nearly doubling from last year’s Rs 1,615.4 billion (1.5% of GDP), reflecting tighter control over non-markup expenditures.
The fiscal consolidation drive has been further reinforced by the provinces, which contributed a combined surplus of Rs 1,053.3 billion, up from Rs 435.4 billion in the previous year. This intergovernmental cooperation is a cornerstone of sustainable fiscal management and is being institutionalized through the ongoing National Fiscal Pact.
Expenditures rose by 19.4% year-on-year to Rs 16,337.0 billion in the first nine months of FY 2025, primarily due to enhanced development outlays. The federal Public Sector Development Program (PSDP) surged by 28.6%, reaching Rs 413.6 billion, supporting long-term economic priorities. In contrast, current expenditures, though still high at Rs 14,588.2 billion, grew at a slower pace of 18.3%. Notably, the growth in markup payments decelerated to 16.7%, compared to 54.0% the previous year, easing pressure on the budget.
On the revenue front, total collections increased by an impressive 36.7%, reaching Rs 13,367.0 billion. Tax revenues rose by 25.8% to Rs 9,137.3 billion, while non-tax revenues soared by 68%, fueled by higher SBP profits, petroleum levies, and royalties. The Federal Board of Revenue (FBR) also posted a provisional net tax collection of Rs 9,300.2 billion during July–April FY 2025, showing strong growth of 26.3%.
The Economic Survey 2024-25 underscores the government’s commitment to advancing comprehensive fiscal reforms and fostering macroeconomic stability. Through effective economic policy coordination and sustained fiscal discipline, Pakistan aims to achieve inclusive and resilient economic growth.