The budget surplus is equivalent to 1.6% of GDP; Punjab leads the provinces with a surplus of 442 billion rupees
ISLAMABAD:
During the first quarter of the current financial year 2025-26, the federal government’s revenue exceeded its expenditure, resulting in a budget surplus of over Rs 2,119 billion.
According to the latest report released by the Ministry of Finance, the federal government recorded a surplus of Rs1.338 trillion, while the provinces recorded a combined surplus of Rs781 billion between July and September.
The report further reveals that a primary surplus of Rs3.497 trillion was recorded during the same period. Total interest payments on loans stood at over Rs 1,377 billion, while the net income of the federation after transfer of Rs 1,775 billion to provinces stood at Rs 4,117 billion. The overall budget surplus was equivalent to 1.6% of the country’s GDP.
The increase in surplus was largely due to the State Bank of Pakistan’s record profit of Rs2,428 billion. Oil tax revenues increased by 30%, reaching 371 billion rupees in the first three months, while total revenues increased by 6% to over 6,199 billion rupees.
Tax revenues increased by 11%, totaling 2.884 billion rupees, while provincial tax revenues jumped 21%, contributing to a cumulative provincial surplus of 781 billion rupees.
Among the provinces, Punjab recorded the highest surplus of Rs442 billion in the first quarter – ten times higher than the previous year – followed by Sindh with Rs209 billion, Khyber-Pakhtunkhwa at Rs77 billion and Balochistan at Rs54 billion.
The report noted that total expenditure increased by 3.6%, reaching 4.08 trillion rupees. Defense spending amounted to Rs447 billion, or 0.3% of GDP.
Expenditure on development projects stood at Rs41 billion, pensions at Rs161 billion, while grants worth Rs119 billion were disbursed during the first quarter of the financial year.
