By Staff Reporter
ISLAMABAD: Pakistan recorded a fiscal surplus of 1.6% of gross domestic product in the first quarter of the current fiscal year, supported by record profits at the State Bank of Pakistan, a 30% jump in petroleum levy collections and robust provincial cash balances, the Ministry of Finance said Friday.
The overall budget balance showed a surplus of Rs2.12 trillion in absolute terms for July through September, up 10% from Rs1.896 trillion in the same period a year earlier, according to the ministry’s fiscal operations report. As a share of GDP, the surplus slipped to 1.6% from 1.7%.
The primary balance — excluding interest payments — stood at 2.7% of GDP, compared with 2.8% a year earlier. In absolute terms, the primary surplus rose 8.4% to Rs3.497 trillion from Rs3.2 trillion. Total revenues increased 6% to Rs6.2 trillion from Rs5.83 trillion, equivalent to 4.8% of GDP versus 5.1% a year ago. Tax revenues held steady at 2.4% of GDP, while non-tax revenues declined to 2.4% from 2.7%. Total tax receipts grew 12% to Rs3.15 trillion from Rs2.77 trillion.
The Federal Board of Revenue collected Rs2.884 trillion, up 11% from Rs2.563 trillion, but its share of GDP remained at 2.2%. The four provinces together mobilised Rs270 billion in tax revenues, a 21% increase from Rs213 billion.
Provincial cash surpluses more than doubled to Rs781 billion from Rs360 billion, a 54% rise. The ministry attributed the increase largely to slower or last-minute fund releases from the center. Total expenditure rose 3.6% to Rs4.08 trillion from Rs3.93 trillion. As a percentage of GDP, spending fell to 3.1% from 3.4%. The statistical discrepancy widened to Rs262 billion from Rs117 billion, apparently due to delayed federal transfers to the provinces.
Current expenditure climbed 12.6% to Rs4.07 trillion from Rs3.54 trillion but stayed at 3.1% of GDP. Markup payments increased 5% to Rs1.378 trillion from Rs1.31 trillion, holding at 1.1% of GDP. Defence spending rose 8.4% to Rs447.5 billion from Rs410 billion, but declined to 0.3% of GDP from 0.4%. Of total federal non-tax revenue of Rs2.984 trillion, down slightly from Rs2.997 trillion, the bulk — Rs2.43 trillion — came from SBP profits, compared with Rs2.5 trillion a year earlier. These were driven by the lagged impact of the record-high 22% policy rate.
Markup and dividend income from state-owned enterprises fell 35% to about Rs40 billion from Rs 62 billion. Punjab posted a record surplus of Rs442 billion in the first quarter, a tenfold increase from Rs40 billion. Sindh’s surplus rose 37% to Rs209 billion from Rs131 billion. Khyber Pakhtunkhwa’s surplus dropped 35% to Rs77 billion from Rs104 billion, while Balochistan’s fell over 57% to Rs54 billion from Rs85 billion. Last year’s full fiscal year ended with a 5.4% deficit, as rising expenditures offset the one-time impact of SBP profits.
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