Pakistan’s fiscal indicators have shown remarkable improvement in the first quarter of the current fiscal year, according to a new report by the Ministry of Finance.
From July to September, tax revenue increased by 12.5%, surpassing Rs2,884 billion.
The report revealed that total expenditure rose by 7.6% to reach Rs1,760 billion during the same period. Despite this increase, the government recorded a fiscal surplus of over Rs1,509 billion, a significant turnaround compared to a fiscal deficit of over Rs648 billion in the corresponding period last year.
Strong fiscal management drives improvement
Officials credited the improvement to better fiscal management and prudent financial control. The report highlighted that these measures helped stabilize the economy and improve Pakistan’s overall fiscal discipline.
One of the most notable improvements was in the primary balance, which showed a surplus of Rs2,939 billion from July to September. This marks a dramatic rise compared to the Rs49.4 billion primary surplus recorded during the same period last year.
According to the State Bank of Pakistan, Pakistan's current account had a surplus of $110 million in September. In August, the country's current account was in deficit of $325 million.
According to experts, having a current account surplus despite the lack of growth in exports is a big deal. The current account surplus was created due to an increase in remittances.
