In a significant fiscal achievement, Pakistan has posted a fiscal surplus of Rs 1.69 trillion or 1.4% of GDP and a primary surplus of Rs 3 trillion or 2.4% of GDP for the first quarter of Fiscal Year 2025 (1QFY25), the first since the second quarter of FY04, according to brokerage firm Arif Habib Limited (AHL).
The surplus was primarily driven by an impressive profit contribution from the State Bank of Pakistan (SBP), which amounted to Rs 2.5 trillion.
This period marked a primary surplus of Rs 3 trillion, the highest ever recorded, reflecting strong fiscal management and profitable central banking operations. Total revenue for the quarter was Rs 5,827 billion, an increase of 67% compared to the same period last year, with tax revenues alone rising by 72% to Rs 2,775 billion.
A key factor in the revenue boost was a rise in non-tax revenue, which soared to Rs3,051 billion, marking a 358% increase year-over-year, largely bolstered by the central bank’s profits. This surge in revenue far outpaced total expenditures, which were Rs4,131 billion, showing a modest 16% increase from the previous year.
Mark-up payments during this quarter saw a 5% year-over-year decline, which was largely attributed to a 13% reduction in domestic mark-up servicing due to declining interest rates, helping to reduce the financial burden on the government.
Provincial revenues also showed robust growth, contributing to the overall fiscal health with a 62% increase to Rs 413 billion compared to the same period last year.Â
The consolidated fiscal data showcases a strong rebound in economic management, setting a positive precedent for the fiscal health of the nation.
