The IMF forecasts a decrease in Pakistan s general government gross debt in next year.

The IMF forecasts a decrease in Pakistan s general government gross debt in next year.

The IMF anticipates a decrease in Pakistan's General Government Gross Debt from 76.6 percent of the Gross Domestic Product (GDP) in 2023 to 72.2 percent in 2024, as per the IMF's Fiscal Monitor report. Additionally, the net debt is expected to decrease from 71.6 percent of GDP in 2023 to 68.3 percent in 2024. Government revenue is projected to be 12.5 percent of GDP in 2024 and 12.4 percent in 2025, compared to 11.4 percent in 2023 and 12.1 percent in 2022.

The IMF also forecasts the government's primary balance to be 0.4 percent in 2024, a significant improvement from -1.2 percent in 2023. The overall government balance is expected to be -7.6 percent in 2024, a slight improvement from -8.1 percent in 2023. Moreover, government expenditure is projected to rise from 19.5 percent of GDP in 2023 to 20.1 percent in 2024.

According to the report, Pakistan's debt-to-average-maturity ratio in 2023 is estimated at 33.8 percent of GDP, with a total gross financing need of about 23.7 percent of GDP in 2023. Gross financing need is defined as the projected overall balance and maturing government debt in 2023.