Government spending has surged by 18% in the first 10 months of the fiscal year, pushing the budget deficit to a staggering Rs3,689 billion, according to the Ministry of Finance’s latest Monthly Economic Outlook Report. Total expenditure from July to April reached Rs12,948 billion.
Despite the widening deficit, revenue collection rose sharply by 26%, with the Federal Board of Revenue (FBR) collecting Rs11,136 billion by the end of May. Overseas remittances also jumped by 28.8%, helping to keep the external account in surplus.
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The ministry remains optimistic, projecting inflation to stay between 3% and 4% in June, and large-scale manufacturing is expected to grow, driven by the cement and construction sectors. Rising investor confidence is being credited to ongoing IMF-backed reforms and a recent credit rating upgrade.
On the welfare front, Rs411 billion was disbursed through the Benazir Income Support Programme (BISP), and nearly Rs1 billion in interest-free loans were issued to over 18,000 people to boost financial inclusion and poverty reduction efforts.
