Morning News: Jul 1, 2024 to Jun 27, 2025; Borrowing for budgetary support dives 30pc: SBP - By Vector Research
Jul 9 2025
Vector Securities
- In a significant sign of improved fiscal management, the federal government’s borrowing for budgetary support dropped sharply by 30 percent in the last fiscal year (FY25), driven by enhanced fiscal discipline and tighter expenditure controls.
- Despite numerous reforms, Pakistan’s tax-to-GDP ratio remains below regional averages, hindered by the limited reach of its tax system and the widespread prevalence of informal economic activity, says the Asian Development Bank (ADB).
- Pakistan’s exports of services rose by 8.58pc to $7.65bn during the first 11 months of FY25, up from $7.04bn in the same period last year, largely driven by strong performance in telecommunication, computer, and information services. According to data compiled by the Pakistan Bureau of Statistics (PBS), services exports have shown consistent growth since February 2024, particularly in the information technology and other business segments. However, a 6.5pc decline was recorded in August 2024.