Pakistan Records Third Consecutive Fiscal Surplus in First Quarter of FY27

The Finance Ministry says Pakistan’s fiscal performance improvement is not merely temporary but reflects sustained fiscal discipline and economic stability. A surplus was recorded on a year-on-year basis in the first quarter of FY2027.

According to a Finance Ministry statement, the surplus has been maintained for the past three years, following 23 consecutive years of first-quarter fiscal deficits.

First-quarter figures

The fiscal surplus in the first quarter of FY2027 stood at Rs1.274 trillion, or 0.9 per cent of GDP. The primary surplus was Rs2.974 trillion, or 2.1 per cent of GDP. The first-quarter primary surplus exceeded the budget target by Rs239 billion, or 8.7 per cent.

The fiscal surplus recorded in the first quarter was Rs1.896 trillion in FY2025, Rs2.119 trillion in FY2026, and Rs1.274 trillion in FY2027. Over the past three years, the first-quarter primary surplus reached its three highest levels in 26 years, and the surplus remained above Rs2.9 trillion each year.

Review of previous fiscal years

The Finance Ministry says the fiscal deficit in FY2026 was limited to 2.6 per cent of GDP, the lowest level in 22 years. The primary surplus in FY2026 was 2.9 per cent of GDP, the highest level since at least FY2001. A primary surplus was recorded for three consecutive fiscal years, from FY2024 to FY2026.

Interest expenditure fell by 22 per cent in FY2026. Despite tax relief measures in the FY2027 budget, fiscal discipline was maintained in the first quarter and expenditure was kept under control.

The Finance Ministry says fiscal reforms, a sustained fiscal surplus and the prudent management of debt will strengthen the country’s fiscal credibility, economic resilience and sustainable growth.