Pakistan's fiscal surplus fell 40 percent year-on-year in the first quarter of fiscal year 2026-27, to about Rs1.27 trillion, or 0.9 percent of GDP, according to a summary released by the Finance Division. A fiscal surplus means the government took in more money than it spent over the period, and the gap narrowed sharply compared with a year earlier. The fall came even though Rs381.8 billion was collected under the petroleum levy, a charge on petroleum products.
Why the surplus shrank
Total government expenditure rose 15 percent to Rs4.730 trillion in the quarter, and that figure includes Rs1.700 trillion in interest payments on public debt. Consolidated revenue was Rs6.004 trillion, which leaves a gap of roughly Rs1.27 trillion between income and spending. Before interest is counted, the government recorded a primary surplus of about Rs2.97 trillion, equal to 2.1 percent of GDP.
The International Monetary Fund (IMF) has projected a negative 3.5 percent, excluding grants, under the ongoing USD 7 billion Extended Fund Facility, a long-term lending programme Pakistan is part of. The projection is set against the quarter's figures, which show Pakistan's fiscal surplus well below last year's level.
Revenue and spending details
The federal government collected Rs3.086 trillion through the Federal Board of Revenue (FBR), up Rs202 billion, or 7 percent, from the same quarter last year. Non-tax receipts were larger still at Rs2.617 trillion, about 44 percent of total revenue. The Finance Division said revenue remained heavily dependent on these receipts, and the State Bank of Pakistan (SBP) contributed Rs1.933 trillion in profits.
On the spending side, mark-up payments on public debt, meaning interest, were the largest single item at Rs1.699 trillion. Defence expenditure stood at Rs495.4 billion and pension payments at Rs264 billion. Development spending under the Public Sector Development Programme (PSDP), the federal plan for development projects, was Rs467.7 billion.
Provinces and financing
Provincial governments together recorded a surplus of Rs599.8 billion. Punjab posted Rs333.3 billion, Sindh Rs180.6 billion and Khyber Pakhtunkhwa Rs102.1 billion, while Balochistan recorded a deficit of Rs16.2 billion. Provincial tax revenue rose 12 percent to Rs301 billion, and provincial current spending was Rs111 billion lower than a year earlier.
On financing, the government recorded net external financing of Rs608.9 billion, with gross external inflows of Rs1.247 trillion and external debt repayments of Rs638 billion. The Finance Division said provincial development spending stayed within the budgetary resources allocated to it.
Aasan alfaaz mein
Pakistan ka maliyati surplus pehli sehmahi mein 40 fisad kam ho kar GDP ka 0.9 fisad reh gaya hai. Hukumat ne is arsay mein Rs4.730 trillion kharch kiye, jin mein Rs1.700 trillion sirf sood ki adaigi par gaye. Ye hisaab seedha bijli ya petrol ki qeemat nahi batata, lekin dikhata hai ke maali gunjaish kam hui hai. Aam aadmi ke liye asal sawal ye hai ke aane wale faislon mein tax aur qarz ka bojh kis taraf jaata hai.
