According to the Ministry of Finance’s Fiscal Operations report for the first quarter of the fiscal year (July-September), the country recorded a surplus of Rs1.696 trillion, equivalent to 1.4% of GDP.

This turnaround comes after years of persistent budget deficits, with the SBP posting a record profit of Rs2.5 trillion, largely attributed to the highest-ever policy interest rate of 22%.

Revenue from petroleum levies rose by 18% to Rs262 billion.

Total revenues surged by 117% to Rs5.83 trillion, with non-tax revenues soaring by 550% to Rs3.05 trillion, surpassing tax revenues, which increased by 25% to Rs2.77 trillion.

This fiscal improvement alleviates the immediate need for a mini-budget to address a projected shortfall in tax revenue.

Despite the positive fiscal balance, expenditures also rose by 13% to Rs4.13 trillion, with significant increases in defense spending.

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The federal Public Sector Development Programme saw a notable decline, dropping 45% compared to the previous year.

This fiscal achievement marks a historic shift for Pakistan, reflecting a broader effort to stabilize the economy and improve financial management after decades of deficits.