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Pakistan’s Fiscal Surplus Plummets 40% Amid Revenue Decline in Q1

November 14, 2026 • 25 minutes ago •

ISLAMABAD: Pakistan’s fiscal surplus has significantly decreased by 40% in the first quarter of the current fiscal year, dropping to 0.9% of GDP from 1.7% a year earlier, as reported by the Ministry of Finance.

The overall surplus fell to Rs1.273 trillion, down from Rs2.12 trillion in the same period last year. The primary surplus, which excludes interest payments, also narrowed to 2.1% of GDP, a decline from 2.8% in the previous year, reflecting a decrease in total revenue to 4.2% of GDP from 4.9%.

This decline in fiscal buffers comes despite efforts to control expenditures and cut subsidies, raising concerns about the sustainability of Pakistan’s economic recovery. The shrinking provincial cash surpluses, particularly a reported deficit in Balochistan, further complicate the fiscal landscape.

Looking ahead, the government is expected to reassess its fiscal strategies and may convene meetings to address the declining revenue streams and rising interest payments, which surged by 23% during the quarter.

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