Govt reports fiscal gains, debt falls to 68% of GDP

October 14, 2026 (MLN): Finance Minister Muhammad Aurangzeb has highlighted Pakistan’s economic progress despite persistent challenges, citing a 22-year low fiscal deficit, consecutive primary surpluses and rising tax revenues during a panel discussion at the World Bank–IMF Annual Meetings 2026 in Bangkok, Thailand.

Speaking at the session titled “Mitigating Sovereign Risks in Market-Access Countries,” the finance minister said Pakistan’s fiscal deficit had declined to 2.6% of gross domestic product (GDP), while the country had recorded primary surpluses for three consecutive years.

He highlighted a 40% increase in tax revenues over the past two years, reflecting progress in revenue mobilization and fiscal reforms.

The finance minister also noted that Pakistan’s public debt had declined from 75% to 68% of GDP, indicating an improvement in the country’s debt position.

Muhammad Aurangzeb further highlighted Pakistan’s return to international capital markets after a four-year gap, during which the country raised $3bn.

Addressing the country’s reform programme, he emphasized that the reforms were driven by Pakistan’s own national priorities and supported by the International Monetary Fund (IMF).

The finance minister underscored that Pakistan’s focus must now extend beyond economic stabilization towards achieving sustainable growth, building on the progress made in fiscal consolidation and structural reforms.

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