PIAF Welcomes Pakistan’s Rare Rs2.12 Trillion Fiscal Surplus, Urges Policies for High-Growth Expansion

By Farzana Chaudhry — Lahore, Pakistan

LAHORE — The Pakistan Industrial and Traders Associations Front (PIAF) has praised the government for achieving a rare Rs2.12 trillion fiscal surplus in the first quarter of the current fiscal year, calling it a “positive and confidence-building milestone” for Pakistan’s economy. However, the business body emphasized that the surplus must be accompanied by long-term, growth-driven reforms to generate sustainable economic momentum.

The Ministry of Finance confirmed that the Q1 fiscal surplus — equivalent to 1.6% of GDP — was driven largely by record State Bank of Pakistan (SBP) profits, a 30% increase in petroleum levy collection, and strong provincial cash surpluses. The figure reflects a 10% rise from last year’s Rs1.896 trillion surplus. Meanwhile, the primary balance stood at 2.7% of GDP, slightly below last year’s 2.8%.

In a joint statement with Senior Vice Chairman Nasrullah Mughal and Vice Chairman Tahir Manzoor Chaudhary, PIAF Chairman and LCCI President Faheemur Rehman Saigol applauded the fiscal achievement, saying such surpluses “signal to investors and global markets that Pakistan is committed to stabilizing its economy.”

Saigol noted that the SBP’s strong profitability — bolstered by a historically high 22% policy rate — had played an instrumental role in strengthening state revenues. He added that the government’s ability to raise Rs3.15 trillion in tax receipts, along with a 54% jump in provincial cash surpluses, demonstrated improved fiscal management.

Punjab led with a record Rs442 billion surplus, followed by Sindh’s Rs209 billion, KP’s Rs77 billion, and Balochistan’s Rs54 billion.