Pakistan posts Rs542bn fiscal surplus in 1HFY26

February 09, 2026 (MLN): Pakistan has posted its first fiscal surplus on a half-year basis in the first half of fiscal year 2026 (1HFY26), which amounts to Rs542bn, or 0.4% of GDP.

This marks a significant turnaround from the Rs1.5tr deficit, equivalent to 1.2% of GDP, recorded during the same period last year, according to the Government of Pakistan’s Finance Division.

The surplus was driven by a 10.27% decline in total expenditures alongside a 9.42% rise in total revenues.

A major contributor to the expenditure reduction was a 30.69% fall in markup payments, largely due to a 33.92% drop in domestic debt servicing costs which came in at Rs3.1tr.

The Federal Board of Revenue (FBR) collected Rs6.1tr, up 10% Yoy, while non-tax revenue reached Rs3.8tr, supported by Rs2.4tr in profits transferred from the State Bank of Pakistan.

Petroleum Development Levy (PDL) collections rose 50% to Rs823bn. At the provincial level, tax receipts climbed 28% to Rs569bn, and non-tax revenues increased 8% to Rs155bn.

Pakistan also achieved a strong primary surplus of Rs4.1tr, or 3.2% of GDP, in 1HFY26, improving from Rs3.6tr, a year earlier.

Current provincial expenditure stood at Rs2.8tr, with primary current spending at Rs3.2tr, while development expenditure reached Rs950bn, supported by higher outlays from Punjab, Sindh, and Balochistan.

Prudent fiscal management, including early retirement of Rs1.62tr in domestic debt, led to Rs1.59tr in savings on debt servicing.

Spending on social and energy sectors, including BISP and power subsidies, remained aligned with program targets, which showed continued fiscal discipline.

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