Pakistan’s fiscal deficits are large, persistent, and growing, and contribute to macroeconomic volatility, crowding out public and private investment, and thereby, negatively impacting long-term economic growth. The federal Public Expenditure Review (PER) analyzes the key drivers of Pakistan’s fiscal deficits and explores how the Federal Government can regain fiscal and debt sustainability through rationalizing federal fiscal expenditures, increasing domestic revenue collection, and minimizing macroeconomic volatility.
