Pakistan has posted a strong fiscal performance in the first quarter of the current financial year, marking a major turnaround from last year’s deficit. According to the latest report released by the Ministry of Finance, the country recorded a fiscal surplus of Rs1.5 trillion between July and September 2025.
The report highlighted that tax revenue grew by 12.5%, reaching Rs2,884 billion during the three-month period. In contrast, total government expenditure rose by 7.6% to Rs1,760 billion. Despite the increase in spending, Pakistan achieved a solid fiscal surplus, compared to a deficit of Rs648 billion recorded during the same period last year.
Officials attributed this improvement to better fiscal management and strict financial discipline, which helped stabilize the economy and strengthen public finances. The Ministry noted that efforts to curb unnecessary expenses and enhance revenue collection had begun showing tangible results.
A key highlight of the report was the improvement in the primary balance, which showed a surplus of Rs2,939 billion, a sharp rise from Rs49.4 billion in the corresponding quarter of the previous year. The positive results indicate that fiscal reforms and improved policy coordination are beginning to yield benefits for the national economy.
Economic analysts say that the first-quarter surplus will help Pakistan reduce its reliance on borrowing and ease pressure on external financing needs. They believe that continued fiscal discipline and structural reforms could lead to greater economic stability in the months ahead.
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The Ministry of Finance emphasized the government’s commitment to maintaining this momentum by focusing on sustainable growth, efficient public spending, and effective tax collection. Officials also expressed optimism that Pakistan’s improved fiscal position would support investor confidence and lay the foundation for long-term economic recovery.
