Understanding Pakistan's Federal Budget 202425

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The Federal Budget for FY202425 in Pakistan provides a snapshot of the government’s estimated revenues and expenditures. Here are the key takeaways:
Total Spending: The budget estimates total spending to be 18.9 trillion Pakistani rupees (approximately $67.84 billion) for the fiscal year 202425.
Debt Servicing: Debt servicing is projected to be 9.8 trillion rupees in the same period1.
Defence Expenditure: The budget allocates 2.1 trillion rupees for defence expenditure in 202425.
Economic Growth Target: The government aims for 3.6% economic growth during the fiscal year1.
Fiscal Deficit: The fiscal deficit is expected to be 6.9% of GDP.
The government has also implemented reforms, including endtoend digitization at the Federal Board of Revenue and the use of AI to enhance tax compliance. Austerity measures have curtailed nonessential spending, creating fiscal space for propoor initiatives and climate change mitigation.
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