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.
