ISLAMABAD: The International Monetary Fund (IMF) has forecast a gradual improvement in Pakistan’s fiscal indicators over the next five years, including a lower fiscal deficit and a reduced debt-to-GDP ratio. However, it has also warned of persistent revenue shortfalls and rising pension and health expenditures.

In its Fiscal Monitor 2025, released on the sidelines of the IMF-World Bank annual meetings, the estimate for Pakistan’s fiscal deficit — the gap between the country’s total resources and expenditures — for the current financial year is 4.1 per cent of GDP, down from 5.3pc last year but slightly higher than the government’s budget target of 3.9pc.

The IMF advised resisting spending pressures —........

© Dawn Business