Pakistan records Rs1.54tr fiscal deficit in 6MFY25

February 07, 2025 (MLN): Pakistan recorded a fiscal deficit of Rs1.54 trillion (-1.2% of GDP) in the first half of fiscal year 2025, as compared to a fiscal deficit of Rs2.4tr (-2.3% of GDP) in the same period of last year, as per data reported by Finance Ministry.

Meanwhile, the primary surplus stood at Rs3.6tr (2.9% of GDP) in 6MFY25 as against a primary surplus of Rs1.81tr (1.7% of GDP) in 6MFY24.

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 Rs1.79tr borrowed domestically, and Rs608.4 through external financing.

On the revenue front, the government reported a total revenue of Rs9.76tr (7.9% of GDP) as against Rs6.85tr (6.5% of GDP) in 6MFY24.

The tax revenue contributed around Rs6.06tr (62.14% of the total revenue) while the remainder of Rs3.7tr was through non-tax revenue.

Within the overall tax collection, majority of it came from direct taxes which stood at Rs2.78tr, another Rs1.8tr came from sales tax, Rs598.5bn from customs, and Rs346.57bn 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 Rs549.41bn as compared to Rs472.77 bn in the same period last year.

On the expenditure front, the government spent a total of Rs10.86tr (8.7% of GDP) as compared to Rs9.22tr (8.7% of GDP) in the same period of last year.

Of the total expenditure, nearly 93% (Rs10.11tr) was done to manage current expenditures, which mainly included mark-up payments (Rs5.14tr), defence (Rs890.44bn), and pension (Rs449.6bn).

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 264.45bn, Rs91.32bn, Rs333.4bn, and Rs86.3bn, respectively.

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