Dawn
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02:22 Nov 08, 2025
ISLAMABAD: Backed by record interest income of the State Bank of Pakistan (SBP), a 30 per cent surge in petroleum levy collection and strong provincial cash surpluses, the government on Friday reported one of its rare fiscal surpluses — at 1.6pc of GDP — in the first quarter of the current fiscal year, slightly below last year’s 1.7pc. According to the Ministry of Finance’s fiscal operations report for July-September 2025, the overall budget balance showed a surplus of Rs2.12 trillion in absolute terms, up 10pc from Rs1.896tr in the same period last year. As a share of GDP, the surplus slipped marginally from 1.7pc to 1.6pc. Last year eventually closed with a 5.4pc deficit, as rising expenditures gradually offset the one-time impact of SBP profits. The primary balance — the difference between total revenue and expenditure, excluding interest payments — stood at 2.7pc of GDP this year, slightly lower than last year’s 2.8pc. In absolute terms, however, the primary surplus grew 8.4pc to Rs3.497tr, compared to Rs...