Pakistan has reported a fiscal surplus of Rs. 1.7 trillion, equivalent to 1.4 percent of GDP, and a record primary surplus of Rs. 3 trillion, or 2.4 percent of GDP, in the first quarter of the fiscal year 2025 (1QFY25), marking a significant financial milestone based on data from the past two decades.
According to Arif Habib Limited, this is the first budget surplus since the second quarter of FY2004. The primary surplus of Rs. 3 trillion is the largest ever recorded, highlighting a substantial improvement in the country’s fiscal health.
The achievement is partly attributed to a 5 percent year-on-year decline in markup payments during 1QFY25, driven by a 13 percent reduction in domestic markup servicing as interest rates continue to fall.
In contrast, the federal government recorded a budget deficit of 0.9 percent of GDP in 1QFY24, with a primary surplus of 0.4 percent. Additionally, last year, the State Bank of Pakistan (SBP) credited a profit of Rs. 972 billion to the government account in the second quarter of FY24.
