Fiscal surplus equals 1.6% of GDP; Punjab leads provinces with a surplus of Rs 442 billion
ISLAMABAD:
During the first quarter of the current financial year 2025-26, the federal government’s revenue exceeded its expenditure, resulting in a budget surplus of over Rs 2.119 trillion.
According to the latest report issued by the finance ministry, the federal government had a surplus of Rs1.338 trillion, while the provinces recorded a total surplus of Rs781 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 over Rs1.377 trillion, while net income of the federation after transferring Rs1.775 trillion to the provinces stood at Rs4.117 trillion. The total fiscal surplus corresponded to 1.6% of the country’s GDP.
The increase in profits was mainly driven by the State Bank of Pakistan’s record profit of Rs 2.428 trillion. Oil duty collections rose 30% to reach Rs371 billion during the first three months, while total revenue rose 6% to over Rs6.199 trillion.
Tax revenues grew by 11% to a total of Rs.2.884 trillion, while provincial tax revenues increased by 21%, contributing to a cumulative provincial surplus of Rs.781 billion. Rs.
Among the provinces, Punjab recorded the highest profit of Rs442 billion in the first quarter – ten times higher than the previous year – followed by Sindh with Rs209 billion, Khyber-Pakhtunkhwa Rs77 billion and Balochistan Rs54 billion.
The report noted that total spending increased by 3.6% to reach Rs 4.080 trillion. Defense expenditure amounted to Rs 447 billion, representing 0.3% of GDP.
Expenditure on development projects amounted to Rs41 billion, pensions Rs161 billion, while grants worth Rs119 billion were disbursed during the first quarter of the financial year.
