Provinces post Rs600bn combined surplus in 1QFY27

November 14, 2026 (MLN): Pakistan’s four provinces posted a combined fiscal surplus of Rs599.82bn in 1QFY27 (Jul-Sep), led by Punjab at Rs333.28bn, Sindh at Rs180.60bn and Khyber Pakhtunkhwa (KP) at Rs102.14bn, while Balochistan recorded a deficit of Rs16.20bn, according to provisional fiscal operations data by the Finance Division.

The federal government posted a surplus of Rs673.93bn in the same period, and together the two make up the consolidated surplus of Rs1.27tr.

Provincial revenue stood at Rs2.40tr, of which Rs1.90tr came from federal transfers under the NFC Award.

Provincial taxes brought in Rs300.93bn, up about 12%, or Rs32bn, from the same period last year, according to the fiscal performance overview.

Provincial non-tax revenue rose about 39%, or Rs24bn, to Rs86.02bn, while federal loans and grants added Rs114.65bn. Provincial expenditure stood at Rs1.80tr, including current expenditure of Rs1.34tr and development spending of Rs392.45bn, with a statistical discrepancy of Rs60.45bn.

Punjab’s surplus came from revenue of Rs1.12tr against spending of Rs784.10bn, including Rs181.19bn on development.

Sindh collected Rs690.58bn and spent Rs509.98bn, with Rs124.29bn going to development. KP’s revenue stood at Rs413.85bn against expenditure of Rs311.71bn, while Balochistan spent Rs191.22bn against revenue of Rs175.02bn.

Within provincial taxes, sales tax on services brought in Rs185.11bn, followed by stamp duties at Rs26.05bn and motor vehicles tax at Rs24.91bn, with excise duty at Rs3.79bn. Punjab collected Rs86.29bn from sales tax on services and Sindh Rs80.74bn.

KP earned Rs12bn from hydroelectricity profits, and Sindh’s provincial non-tax revenue included Rs10.97bn in mark-up. The overview said provincial current expenditure, excluding mark-up and Article-164 grants, stood at Rs1.26tr, a saving of Rs111bn against the same period last year.

On the federal side, FBR taxes stood at Rs3.09tr, up about 7%, or Rs202bn, from last year. Direct taxes accounted for Rs1.44tr, sales tax for Rs1.14tr, customs duties for Rs312.17bn and federal excise for Rs197.27bn.

Federal non-tax revenue stood at Rs2.53tr, including Rs1.93tr of profit from the State Bank of Pakistan, and petroleum levy collection stood at Rs381.82bn.

Gross revenue receipts stood at Rs5.70tr, of which Rs1.90tr was transferred to provinces, leaving net revenue receipts of Rs3.80tr.

Federal expenditure stood at Rs3.13tr, including current expenditure of Rs3.07tr. Mark-up payments took Rs1.70tr, with Rs1.49tr on domestic debt and Rs206.71bn on foreign debt.

Defence spending stood at Rs495.37bn, pensions at Rs263.96bn, the running of civil government at Rs206.64bn and subsidies at Rs84.60bn, while grants to provinces and others stood at Rs316.72bn.

Development expenditure and net lending stood at Rs161.34bn, including Rs80.82bn of public sector development programme (PSDP) spending and Rs80.53bn of net lending. The federal statistical discrepancy stood at minus Rs97.98bn.

The federal surplus was financed through net external inflows of Rs608.86bn, against a net domestic outflow of Rs1.28tr. Within domestic financing, bank financing stood at minus Rs3.07tr, while non-bank financing stood at Rs1.79tr.

Gross external financing stood at Rs1.25tr, led by Rs909.85bn in programme loans, and external debt repayments of Rs638.01bn left net external financing at Rs608.86bn.

Non-bank financing was led by Rs1.31tr from treasury bills and Rs1.17tr from GOP Ijara Sukuk, partly offset by Rs699.47bn of net repayments on government securities, while saving schemes added Rs110.69bn.

Copyright Mettis Link News