Pakistan: public finances

What is Pakistan's budget for 2026-27?

Pakistan's federal budget for 2026-27 plans total spending of Rs18,771 billion, according to the Finance Division's Budget in Brief 2026-27. The largest items are interest payments (Rs8,054 billion), defence (Rs3,000 billion), grants and transfers (Rs2,680 billion), pensions (Rs1,169 billion) and the federal development programme (Rs1,000 billion).

The Federal Board of Revenue is to collect Rs15,264 billion in taxes, but Rs8,848 billion of revenue passes to the provinces, leaving net federal revenue of Rs11,751 billion. The gap of Rs7,020 billion is financed mainly by borrowing. The fiscal year runs from 1 July to 30 June, and the provinces present their own budgets.

Official sources: Finance Division: Budget in Brief 2026-27 · Finance Division: federal budget 2026-27

How much debt does Pakistan have?

Pakistan's total public debt was Rs86,715 billion (about US$312 billion) at the end of June 2026, equal to 68.3% of GDP, down from 70.6% a year earlier, according to the Finance Division's Annual Debt Review FY26. Domestic debt was Rs59,441 billion and external public debt Rs27,274 billion.

The review also gives a narrower figure under the Fiscal Responsibility and Debt Limitation Act: Rs77,168 billion, or 60.8% of GDP, which nets off government deposits with the banking system. Debt grew 7.7% in 2025-26 against 13% the year before. Pakistan's total external debt, which includes private and bank borrowing abroad, is a different and larger measure published by the State Bank.

Official sources: Finance Division: Annual Debt Review FY26

What is Pakistan's budget deficit?

Pakistan's consolidated fiscal deficit, covering federal and provincial governments, was Rs3,313.4 billion in fiscal year 2025-26, with a primary surplus of Rs3,634.2 billion, according to the Finance Division's September 2026 economic update. The 2026-27 budget targets an overall deficit of Rs5,226 billion, or 3.6% of GDP, according to the Budget in Brief.

The primary balance leaves out interest payments, which are the government's largest cost; Pakistan runs a primary surplus but an overall deficit because of interest. The Finance Division's debt review puts the federal deficit alone at Rs4,763 billion, or 3.8% of GDP, so check whether a figure is federal or consolidated.

Official sources: Finance Division: Monthly Economic Update, September 2026 · Finance Division: Budget in Brief 2026-27 · Finance Division: Annual Debt Review FY26

How much tax does the FBR collect?

The Federal Board of Revenue (FBR) collected Rs13,010.4 billion in fiscal year 2025-26, according to the Finance Division's September 2026 economic update. In July and August 2026 it collected Rs1,722.4 billion, 3.7% more than a year earlier, with sales tax up 13.8% and direct taxes down 2.9%.

The revised estimate for 2025-26 in the Budget in Brief was Rs12,983 billion against an original target of Rs14,131 billion; the 2026-27 target is Rs15,264 billion. FBR revenue is collected federally but more than half is shared with the provinces under the National Finance Commission award. Provincial taxes, such as sales tax on services, are counted separately.

Official sources: Finance Division: Monthly Economic Update, September 2026 · Finance Division: Budget in Brief 2026-27

How much does Pakistan owe the IMF?

Pakistan owed the IMF US$11,050 million at the end of June 2026, up from US$9,268 million a year earlier, according to the Finance Division's Annual Debt Review FY26. The review says two reviews of the IMF's Extended Fund Facility were completed during 2025-26, leading to disbursements of US$2.5 billion, and that IMF claims made up 11% of external public debt.

The balance rises as new tranches are paid out after each review and falls as earlier loans are repaid, so it is not the same as the size of the current programme. Pakistan also draws on the IMF's Resilience and Sustainability Facility. Programme reviews and staff-level agreements are announced on the IMF Pakistan page, which blocked automated checks on 15 October 2026.

Official sources: Finance Division: Annual Debt Review FY26 · IMF: Pakistan country page

How much does Pakistan spend on interest?

Pakistan's federal government spent Rs6,948 billion on interest in fiscal year 2025-26, down 22% from Rs8,887 billion in 2025-26's previous year, according to the Finance Division's Annual Debt Review FY26. The 2026-27 budget sets aside Rs8,054 billion for interest, 43% of total federal spending, according to the Budget in Brief.

Interest is the largest single item in the federal budget, larger than defence and development combined. The bill depends heavily on domestic interest rates, because most debt is in rupees and much of it is short-term or floating-rate. The review credits lower policy rates and debt buybacks for the fall in 2025-26.

Official sources: Finance Division: Annual Debt Review FY26 · Finance Division: Budget in Brief 2026-27

What is Pakistan's national debt?

According to the IMF, general government gross debt in Pakistan was 72.8% of GDP in 2025. Since 2005 it has ranged from 44.2% of GDP (2007) to 80.8% of GDP (2020). It is 7th highest of 20 in Middle East, North Africa, Afghanistan & Pakistan, where the median is 52.5% of GDP. World rank, highest first: 51st of 185.

What is Pakistan's fiscal deficit?

In 2025, general government net lending or borrowing in Pakistan was -5.4% of GDP, according to the IMF, a deficit. Its high point since 2005 was 2005, at -2.3% of GDP; its low point was 2019, at -7.8% of GDP. Across Middle East, North Africa, Afghanistan & Pakistan the middle value was -5.2% of GDP, and Pakistan placed 14th highest of 21. World rank, highest first: 153rd of 188.

How much revenue does Pakistan's government raise?

15.8% of GDP: that is general government revenue in Pakistan for 2025, according to the IMF. That is the highest since at least 2005. It is 18th highest of 21 in Middle East, North Africa, Afghanistan & Pakistan, where the median is 26.3% of GDP. Of 187 countries with 2025 data, 159th highest.

What is Pakistan's government spending?

According to the IMF, general government spending in Pakistan was 21.2% of GDP in 2025. No year since 2005 has been higher. It is 16th highest of 21 in Middle East, North Africa, Afghanistan & Pakistan, where the median is 28.7% of GDP. Worldwide: 139th of 186.

How much does Pakistan spend on its military?

2.9% of GDP: that is military spending in Pakistan for 2025, according to SIPRI. Its high point since 2005 was 2005, at 3.9% of GDP; its low point was 2024, at 2.7% of GDP. It is 9th highest of 15 in Middle East, North Africa, Afghanistan & Pakistan, where the median is 3.1% of GDP. Of 149 countries with 2025 data, 30th highest.