Pakistan recently achieved the very first budget surplus since the last 24 years right at the beginning of fiscal year 2025, for Pakistan. In this quarter, the country is believed to have registered PKR 1.7 trillion as surplus against the last year’s deficit worth of approximately PKR 1 trillion. Fiscal growth was mainly supported by steep growth of non-tax revenue, which improved by over 550%, largely due to higher State Bank profits. This saw total revenue about double to PKR 5.83 trillion from PKR 2.68 trillion a year ago.
Further supporting the fiscal surplus are reduced domestic borrowing and surpluses from the provinces: the three provinces came in with a surplus of PKR 319 billion. Improved fiscal performance will allow Pakistan to pay off the financial commitments, reducing the short-term prospects of another revenue measures and thus alighting the economy while the administration goes about meeting targets given by the IMF
