Pakistan’s fiscal position improved significantly in the first three months of the current financial year, with a budget surplus exceeding Rs2.1 trillion.
The Finance Ministry attributed the positive outcome to record profits from the State Bank of Pakistan and steady growth in tax revenue.
According to the Finance Ministry’s latest report, Pakistan posted a budget surplus of Rs2,119 billion during the first quarter (July–September) of the ongoing fiscal year.
The federal government contributed Rs1,338 billion to the surplus, while the provinces added Rs781 billion collectively.
The Ministry also recorded a primary surplus of Rs3,497 billion, indicating improved fiscal discipline and revenue management across both federal and provincial levels.
Record state bank profits boost revenue
A major contributor to this surplus was the State Bank of Pakistan’s record profit of Rs2,428 billion, which helped strengthen the government’s overall fiscal position.
Total revenue increased by 6 percent, reaching over Rs6,199 billion, while tax collections rose by 11 percent to Rs2,884 billion during the first quarter. The petroleum levy also saw a significant jump of 30 percent, amounting to Rs371 billion, reflecting strong energy-related income streams.
Provincial contributions, surpluses
All four provinces posted budget surpluses, led by Punjab, which reported the highest at Rs442 billion—ten times more than the same period last year.
Sindh followed with a Rs209 billion surplus, Khyber Pakhtunkhwa with Rs77 billion, and Balochistan with Rs54 billion, showcasing improved fiscal management at the provincial level.
The report noted that provinces collected 21 percent more in taxes compared to the previous year, helping push the national surplus to 1.6 percent of the gross national product (GNP).
Despite the rise in revenue, total expenditure increased only 3.6 percent, reaching Rs4,080 billion.
Defense spending remained stable at Rs447 billion, equivalent to 0.3 percent of GDP. Meanwhile, Rs41 billion were spent on development projects, Rs161 billion on pensions, and Rs119 billion were allocated as subsidies during the first quarter.
The federal government’s net income, after transferring Rs1,775 billion to the provinces, stood at Rs4,117 billion, highlighting efficient fiscal coordination between the federation and provinces.
