Pakistan’s fiscal performance has improved significantly due to the Special Investment Facilitation Council’s effective economic strategy and fiscal discipline during the first half of fiscal year 2026, it was reported on Wednesday.
According to the Government of Pakistan’s Finance Division, Pakistan has posted its first fiscal surplus on a half-year basis in the first half of fiscal year 2026 (1HFY26), which amounts to Rs542 billion, or 0.4% of GDP.
This marks a significant turnaround from the Rs1.5tr deficit, equivalent to 1.2% of GDP, recorded during the same period last year.
The surplus was driven by a 10.27% decline in total expenditures alongside a 9.42% rise in total revenues.
A major contributor to the expenditure reduction was a 30.69% fall in markup payments, largely due to a 33.92% drop in domestic debt servicing costs, which came in at Rs3.1tr.
The Federal Board of Revenue (FBR) collected Rs6.1tr, up 10% YoY, while non-tax revenue reached Rs3.8tr, supported by Rs2.4tr in profits transferred from the State Bank of Pakistan.
Petroleum Development Levy (PDL) collections rose 50% to Rs823 billion. At the provincial level, tax receipts climbed 28% to Rs569 bn, and non-tax revenues increased 8% to Rs155bn.
Pakistan also achieved a strong primary surplus of Rs4.1trillion, or 3.2% of GDP, in 1HFY26, improving from Rs3.6 trillion, a year earlier.
Current provincial expenditure stood at Rs2.8tr, with primary current spending at Rs3.2tr, while development expenditure reached Rs950 billion, supported by higher outlays from Punjab, Sindh, and Balochistan.
Prudent fiscal management, including early retirement of Rs1.62 trillion in domestic debt, led to Rs1.59 trillion in savings on debt servicing.
Spending on social and energy sectors, including BISP and power subsidies, remained aligned with program targets, which showed continued fiscal discipline.
