The fiscal surplus is equivalent to 1.6% of GDP; Punjab leads provinces with surplus of Rs 442 billion
ISLAMABAD:
During the first quarter of the current fiscal year 2025-26, the federal government’s revenues exceeded its expenditures, resulting in a budget surplus of more than Rs 2,119 trillion.
According to the latest report released by the Ministry of Finance, the federal government recorded a surplus of Rp 1,338 trillion, while provinces recorded a combined surplus of Rp 781 billion between July and September.
The report further revealed that a primary surplus of Rs 3,497 trillion was recorded during the same period. Total interest payments on loans amounted to more than 1,377 trillion rupees, while the net income of the federation after transferring 1,775 trillion rupees to the provinces amounted to 4,117 trillion rupees. The global fiscal surplus was equivalent to 1.6% of the country’s GDP.
The increase in surplus was largely due to the State Bank of Pakistan’s record profit of Rs 2,428 trillion. Oil tax collection increased by 30%, reaching Rp371 billion during the first three months, while total revenue increased by 6% to more than Rp6,199 trillion.
Tax revenues grew by 11%, reaching a total of Rp 2,884 trillion, while provincial tax collections increased by 21%, contributing to a cumulative provincial surplus of Rp 781 billion.
Among provinces, Punjab recorded the highest surplus of Rs 442 billion during the first quarter (ten times higher than the previous year), followed by Sindh with Rs 209 billion, Khyber-Pakhtunkhwa with Rs 77 billion and Balochistan with Rs 54 billion.
The report noted that total expenditures increased by 3.6%, reaching Rp4.08 trillion. Defense spending amounted to Rs 447 billion, which is 0.3% of GDP.
Spending on development projects amounted to Rs 41 billion, pensions to Rs 161 billion, while grants worth Rs 119 billion were disbursed during the first quarter of the fiscal year.
