Pakistan’s budget is in deficit again; fiscal gap of more than Rs 856 billion recorded in 9 months

Islamabad: An important development has come to light for Pakistan’s economy, where the federal budget went into deficit again in the first nine months of the current fiscal year.

According to the Fiscal Operation Report issued by the Federal Ministry of Finance, the overall budget deficit was recorded at Rs 856 billion and 360 million from July 2025 to March 2026.

According to the report, the budget was in a surplus of Rs 541 billion 880 million during the first half of the fiscal year, i.e., July to December 2025; however, due to increased expenditure in the subsequent months, the fiscal situation turned into a deficit again.

According to the Ministry of Finance, the government’s total revenue from July 2025 to March 2026 was more than Rs 14,799 billion.

The report states that although the overall budget deficit was recorded, the primary budget surplus remained more than Rs 4,000 billion, which is being considered a positive sign regarding economic discipline.

According to economists, interest payments on loans are still the main reason for the government’s fiscal pressure, while measures to increase revenues and control expenditures will be important in the upcoming budget.

Economic analysts say that the IMF programme, tax reforms and fiscal discipline will play an important role in determining Pakistan’s economic direction in the coming months.