In a significant economic milestone, Pakistan has reported its first fiscal surplus in 24 years, driven by unprecedented profits from the State Bank of Pakistan (SBP) and increased revenue from petroleum levies.
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.
Read more
“Remarkable turnaround” of economy despite coronavirus outbreak: PM Imran
Current account deficit becomes surplus for the first time in last several years: Hafeez
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.
