ISLAMABAD: Debt servicing continued to outpace defence and development spending by a wide margin in the first half of the current fiscal year, tightening the squeeze on the economy under the International Monetary Fund (IMF) programme, it was reported on Saturday.
Markup payments on the country’s accumulated public debt consumed more than twice the combined allocations for defence and the Public Sector Development Programme (PSDP). Debt servicing totalled Rs3,563 billion, compared with Rs1,044 billion for defence and Rs238 billion for the PSDP in the first six months of CFY26.
The statistical discrepancy persisted at Rs413.3 billion in the first half of the current fiscal year, against Rs439.7 billion in the same period last year. Punjab recorded a discrepancy of Rs144.4 billion out of the total provincial discrepancy of Rs342 billion.
Under the tight scrutiny and noose of the IMF programme, the fiscal surplus of Rs542 billion in the first half (July-Dec) period of the current fiscal year, compared to a deficit of Rs1537 billion in the same period of the previous financial year.
The primary balance, which is considered sacrosanct by the IMF, clinched a surplus of Rs4,105 billion, equivalent to 3.2% of GDP, against 3,600 billion or 3.1% of GDP in the same period of the last financial year.
The IMF’s upcoming review mission is expected to visit Islamabad by the end of the ongoing month or early next month to undertake the third review under the $7 billion Extended Fund Facility (EFF) programme. The IMF’s review mission will finalise the major contours of the next budget for 2026-27, especially on FBR’s taxation measures.
According to the fiscal operation released by the Ministry of Finance on Friday, disclosing that total revenues of the country fetched Rs10,683 billion in the first six months of CFY 2026, out of which the FBR collected Rs6160 billion and non-tax revenue of Rs3954 billion.
Out of non-tax revenues of Rs3,954 billion, the petroleum levy fetched Rs 823 billion in the first six months of the current fiscal year.
The State Bank of Pakistan (SBP) profit, which was paid out in the first quarter, was the largest single item in the non-tax revenue to the tune of Rs2,428 billion. The Captive Power Plants (CPP) levy fetched Rs8.8 billion, and the carbon levy Rs25.485 billion in the first six months of CFY26.
The PTA profit stood at Rs24.8 billion, royalties on oil and gas Rs61.14 billion, passport fees Rs26.7 billion, natural gas development surcharge Rs32.3 billion, receipt of ICT Administration Rs17 billion and others.
