ISLAMABAD: The International Monetary Fund (IMF) has projected an increase of 0.4 percent in Pakistan’s government net debt, increasing from 65.3 percent of GDP in 2025 to 65.7 percent in 2026.
According to the IMF report “Fiscal Monitor, Spending Smarter: How Efficient and Well-Allocated Public Spending Can Boost Economic Growth,” the gross debt for the Pakistani government is projected to decrease from 71.6 percent of GDP in 2025 to 71.3 percent in 2026. The Fund has projected a decline in government expenditure from 21.1 percent of GDP in 2025 to 20.4 percent in 2026.
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The government revenue is projected at 16.2 percent of GDP for 2026,against 15.7 percent for 2025and 12.7 percent during the same period of 2024. The Fund has projected the government’s primary balance at 2.5 percent for 2026 against 2.4 percent in 2025. Further, the government’s overall balance is projected at - 4.1 percent for 2026 against - 5.3 percent in 2025.
According to the report, the country’s debt to average maturity in 2025 is estimated at 14.2 percent of GDP. The projected interest rate–growth differential 2025-30 is -1.2 percent, while the nonresident holding of general government debt, 2024, is projected at 28.6 percent of total.
Copyright Business Recorder, 2025
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