Pakistan, June 3 -- Pakistan is projected to record its lowest budget deficit in 21 years during the outgoing fiscal year 2025-26. The improvement is significant because it signals stronger fiscal discipline under an International Monetary Fund programme. The development impacts government finances, public spending, and economic stability.

According to local research house Topline Securities, the budget deficit is expected to fall to 3.6 percent of gross domestic product. This compares with 5.4 percent recorded in the previous fiscal year. Analysts said tighter fiscal policy and improved revenue collection contributed to the decline.

Read more: Final outlines of Punjab budget for financial year 2026-27 prepared

Experts noted that contr...