Pakistan records first primary surplus in almost two decades

May 01, 2024 (MLN): Pakistan recorded the first primary surplus in almost two decades during fiscal year 2023-24 by increasing revenue and keeping non-interest spending in check.

The country recorded a primary surplus of Rs952.92 billion or 0.9% of GDP in FY24, the first surplus since FY07, according to data released by the finance ministry.

That compares with a primary deficit of Rs825.53bn or 1.0% of GDP in FY23, and an average yearly deficit of Rs1.13 trillion in the last five years.

For FY25, the government has set the primary surplus target at 2.0% of GDP.

The State Bank of Pakistan's monetary policy committee in the meeting held yesterday emphasized on achieving the envisaged fiscal consolidation and timely realization of planned external inflows to support overall macroeconomic stability, and build fiscal and external buffers for the country to respond to future economic shocks.

The country's fiscal deficit during FY24 narrowed to 6.8% of gross domestic product, as compared to 7.7% of GDP last year, as per data reported by Finance Ministry.

However, in Rupee terms, the fiscal gap widened to Rs7.21 trillion as against Rs6.52tr last year.

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