Govt records Rs2.1tr budget surplus | The Express Tribune

ISLAMABAD:

During the first quarter of the current fiscal year 2025-26, the federal government’s income exceeded its expenditures, resulting in a budget surplus of over Rs2.119 trillion.

According to the latest report issued by the Ministry of Finance, the federal government posted a surplus of Rs1.338 trillion, while the provinces recorded a combined surplus of Rs781 billion between July and September.

The report further revealed that a primary surplus of Rs3.497 trillion was recorded during the same period. Total interest payments on loans amounted to over Rs1.377 trillion, while the federation’s net income after transferring Rs1.775 trillion to the provinces stood at Rs4.117 trillion. The overall fiscal surplus was equivalent to 1.6% of the country’s GDP.

The increase in surplus was largely driven by the State Bank of Pakistan’s record profit of Rs2.428 trillion. Petroleum levy collections rose by 30%, reaching Rs371 billion during the first three months, while total revenue increased by 6% to over Rs6.199 trillion.

Tax revenues grew by 11%, totalling Rs2.884 trillion, while provincial tax collections jumped by 21%, contributing to a cumulative provincial surplus of Rs781 billion.

Among the provinces, Punjab recorded the highest surplus of Rs442 billion during the first quarter — ten times higher than the previous year —followed by Sindh with Rs209 billion, Khyber-Pakhtunkhwa Rs77 billion, and Balochistan Rs54 billion.

The report noted that total expenditures rose by 3.6%, reaching Rs4.080 trillion. Defense spending stood at Rs447 billion, representing 0.3% of GDP.

Expenditure on development projects amounted to Rs41 billion, pensions Rs161 billion, while subsidies worth Rs119 billion were disbursed during the first quarter of the fiscal year.