Pakistan's Overall Balance (% of GDP): Net Lending/Borrowing Trends and Forecasts (1990-2029)

Pakistan’s fiscal trends highlight persistent deficits driven by structural challenges and economic shocks. The 1990s saw deficits stabilize around -4%, but the 2008 global financial crisis and subsequent political instability increased fiscal pressures, with the deficit reaching -5.9% in 2008. By 2019, rising public expenditures and limited revenue growth pushed the deficit to -7.8%.

The COVID-19 pandemic exacerbated fiscal strain, maintaining the deficit at -7.8% through 2023. Projections indicate gradual improvement, narrowing to -4.6% by 2029, contingent on structural reforms, improved revenue collection, and controlled expenditures to stabilize fiscal imbalances.