Pakistan Aims for Record High Primary Surplus in FY25
Pakistan is aiming to achieve its biggest primary surplus in 25 years, targeting 2% of GDP in FY25 under a new IMF bailout program.
A primary surplus means the government’s revenue exceeds its spending before interest payments are factored in. This target includes both everyday expenses and investments in development projects.
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The government has set an ambitious goal of Rs. 2.5 trillion (2% of GDP) for the primary surplus in FY25. However, the IMF’s May 2024 report estimates a more conservative figure of 0.4% of GDP. Even excluding any surplus from provincial governments, Pakistan is aiming for a 1% of GDP primary surplus in FY25, compared to a projected 0.13% deficit in the current fiscal year (FY24).
