Islamabad: Pakistan has reported a fiscal surplus of 1.274 trillion rupees, equivalent to 0.9 percent of its Gross Domestic Product (GDP), for the first quarter of the current fiscal year, according to Khurram Schehzad, Adviser to the Finance Minister. The announcement underscores a significant financial milestone for the country as it continues to move away from a long history of fiscal deficits.

According to Radio Pakistan, the primary surplus during this period reached 2.974 trillion rupees, equating to 2.1 percent of GDP, and exceeded the budget target by 239 billion rupees. This marks an 8.7 percent improvement over the budgeted figures. Schehzad highlighted that Pakistan has consistently recorded fiscal surpluses in the first quarters of the last three fiscal years, breaking a 23-year trend of first-quarter fiscal deficits.

The fiscal surplus figures for the first quarter of Financial Year 2025 and Financial Year 2026 were 1.896 trillion rupees and 2.119 trillion rupees, respectively. Over the past three years, Pakistan has also achieved the highest first-quarter primary surpluses in twenty-six years, each exceeding 2.9 trillion rupees.

During Fiscal Year 2026, Pakistan’s fiscal deficit was 2.6 percent of GDP, the lowest in twenty-two years, while the primary surplus was 2.9 percent of GDP, the highest since at least Fiscal Year 2001. From 2024 to 2026, the country recorded three consecutive annual primary surpluses, and interest expenditure saw a notable reduction of twenty-two percent in Fiscal Year 2026.

Despite the introduction of tax relief measures in the Fiscal Year 2027 budget, tax collections surpassed targets, and government expenditure remained controlled. Schehzad emphasized that Pakistan’s fiscal performance is increasingly characterized by sustained financial discipline rather than sporadic improvements.