Fiscal deficit narrows to Rs2.97tr in Q3FY25

May 08, 2025 (MLN): Pakistan recorded a fiscal deficit of Rs2.97 trillion (-2.4% of GDP) in the third quarter of fiscal year 2025, as compared to a fiscal deficit of Rs3.9tr (-3.7% of GDP) in the same period of last year, as per data reported by Finance Ministry.

Meanwhile, the primary surplus stood at Rs3.46tr (2.8% of GDP) in Q3FY25 as against a primary surplus of Rs1.61tr (1.5% of GDP) in Q3FY24.

The government plugged the fiscal deficit through domestic borrowing of Rs1.62tr but saw a net outflow of Rs78.7 billion in external financing.

In the same period last year, the government's borrowings to aid the budget deficit included an amount of Rs2.95tr borrowed domestically, and Rs19.5bn through external financing.

On the revenue front, the government reported a total revenue of Rs13.36tr (10.8% of GDP) as against Rs9.78tr (9.2% of GDP) in Q3FY24.

The tax revenue contributed around Rs9.13tr (7.4% of the total revenue) while the remainder of Rs4.29tr was through non-tax revenue.

Within the overall tax collection, majority of it came from direct taxes which stood at Rs4.12tr, another Rs2.86tr came from sales tax, Rs927.465bn from customs, and Rs9.27bn through Federal Excise Duties. 

Moreover, under the non-tax revenue head, the major chunk was contributed by the surplus profit of the State Bank of Pakistan at Rs2.5tr.

This was followed by petroleum levy worth Rs2.43bn as compared to Rs1.73bn in the same period last year.

On the expenditure front, the government spent a total of Rs16.13tr (13% of GDP) as compared to Rs13.47tr (12.7% of GDP) in the same period of last year.

Of the total expenditure, 13% (Rs16.13tr) was spent to manage current expenditures, which mainly included mark-up payments (Rs10.58tr), defence (Rs1.42tr), and pension (Rs672.5bn).

To note, government data showed that all four provinces recorded a budget surplus, with Sindh, Baluchistan, Punjab, and KPK's overall balance clocking in at Rs 395bn, Rs105.79bn, Rs441.12bn, and Rs111.3bn, respectively.

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