Pakistan records a fiscal surplus of Rs 1.274 trillion in the first quarter

Summary: According to the Ministry of Finance, Pakistan recorded a fiscal surplus of Rs 1.274 trillion in the first quarter of fiscal year 2027, which is 0.9 percent of GDP. The primary surplus was Rs 2.974 trillion, while the government claimed to achieve a primary fiscal surplus for the third consecutive year.

Islamabad: Pakistan has recorded a fiscal surplus for the third consecutive year during the first quarter of fiscal year 2027, under which the total fiscal surplus from July to September 2026 was Rs 1.274 trillion.

According to the financial data released by the Ministry of Finance on November 13, the overall fiscal surplus was 0.9 percent of GDP, while the primary fiscal surplus was recorded at Rs2.974 trillion, which is 2.1 percent of GDP.

According to the announcement, the primary surplus in the first quarter was Rs239 billion higher than the budget target, which shows an increase of 8.7 percent over the set target.

According to the Ministry of Finance data, the overall fiscal surplus was recorded at Rs1.896 trillion in the first quarter of fiscal year 2025, while it was Rs2.119 trillion in the same period of fiscal year 2026. This volume remained at Rs1.274 trillion in the first quarter of the current fiscal year.

According to the Ministry of Finance, the fiscal deficit during the fiscal year 2026 was limited to 2.6 percent of GDP, which was the lowest level in 22 years. Similarly, the primary surplus reached 2.9 percent of GDP, which was declared the highest level since 2001.

The statement further stated that the primary surplus was recorded for three consecutive fiscal years, while the interest payment expenditure decreased by 22 percent during the fiscal year 2026.

On the other hand, according to the latest financial report, the government’s total income in the first quarter of the fiscal year 2027 was Rs6.004 trillion, while the expenditure was Rs4.730 trillion. During this period, tax collections were recorded at Rs3.387 trillion.

The improvement in fiscal surplus is being hailed as a significant step forward for the government’s fiscal discipline, but its sustainable impact will depend on increasing revenue, curbing unnecessary expenditure and reducing interest payments on debt.