Country’s Fiscal Surplus Hits Record High in First Quarter of FY26

Islamabad: The finance division has announced that the country achieved its highest-ever quarterly fiscal surplus during the first quarter of FY26. The surplus amounted to PkR2.1 trillion, representing 1.6% of the gross domestic product (GDP), marking a 12% increase compared to the same period last year.

The primary surplus for the first quarter stood at PkR3.5 trillion, or 2.7% of GDP, also reflecting a 12% year-on-year increase. The growth in total revenues by 6% year-on-year was primarily driven by a 14% rise in tax revenues, while non-tax revenues remained consistent with the previous year. Specifically, direct taxes increased by 11% and sales tax by 13% year-on-year. Non-tax revenues were largely supported by the State Bank of Pakistan’s profit transfers, which amounted to PkR2.4 trillion, a 3% rise from the previous year. Petroleum levy collections also saw a significant rise, totaling PkR372 billion, a 42% increase year-on-year.

Total expenditures for the quarter rose by 4% year-on-year. Within this, markup payments increased to PkR1.38 trillion, up 5% from the previous year. The effect of declining interest rates helped to partially offset the impact of higher debt levels, with the government’s total debt reaching PkR77.5 trillion, a 10% rise as of August 2025.