Pakistan records primary surplus of Rs1.8tr in 1HFY24

January 29, 2024 (MLN): Pakistan recorded a primary surplus of 1.7% of GDP (Rs1.81 trillion) in the first half of the fiscal year 2024 as against a primary surplus of 1.1% (Rs890 billion) in 1HFY23, as per data reported by Finance Ministry.

On the other hand, the country's overall fiscal deficit in 1HFY24 rose to 2.3% of GDP (Rs2.41 trillion) against 2% of GDP (Rs1.68tr) in the same period of last year.

The government plugged this deficit through domestic borrowing of Rs1.8tr, while the remaining amount of Rs608bn was borrowed externally.

In the same period last year, the government's borrowings to aid the budget deficit stood at Rs1.68tr, which included an amount of Rs1.98tr borrowed domestically, while Rs296bn was paid off externally.

On the revenue front, the government reported a total revenue of Rs6.85tr as against Rs4.7tr in 1HFY23.

The tax revenue contributed around Rs4.83tr (70.53% of the total revenue) while the remainder of Rs2.02tr was through non-tax revenue.

Within the overall tax collection, majority of it came from direct taxes which stood at Rs2.15tr, another Rs1.52tr came from sales tax, Rs540.5bn from customs, and Rs264.6bn 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 Rs972.18bn.

This was followed by petroleum levy worth Rs472.7bn as compared to Rs177.8bn in 1HFY23.

On the expenditure front, the government spent a total of Rs9.23tr, of which nearly 92.47% (Rs8.56tr) was done to manage current expenditures, which mainly included mark-up payments (Rs4.22tr), defence (Rs757.6bn), pension (Rs404.4bn).

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 Rs100.16bn, Rs97.4bn, Rs42.72bn, and Rs49.13bn, respectively.

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