What Is The Current State Of Pakistan's Budget Deficit?

As of 2021, the current state of Pakistan's budget deficit is relatively high. According to the World Bank, Pakistan's budget deficit as a percentage of GDP was around 7.2% in 2021. This is considered to be a relatively high level of budget deficit, as many countries aim to maintain budget deficits below 3% of GDP.

There are several factors that have contributed to the current high level of Pakistan's budget deficit. One factor is the country's high level of public spending, which has exceeded its revenue in recent years. The government has spent heavily on infrastructure projects, social welfare programs, and military expenses, which has contributed to the budget deficit.

Another factor is the low level of tax collection in Pakistan. The government has struggled to effectively collect taxes from individuals and businesses, which has reduced its revenue.

Finally, the Pakistani rupee has weakened against other major currencies in recent years, which has also contributed to the budget deficit. As the value of the rupee has fallen, the government has had to pay more in local currency to service its foreign-currency denominated debt.

Overall, the current state of Pakistan's budget deficit is relatively high due to a combination of economic and financial factors.