Fiscal surplus shrinks 40pc as revenues decline

Pakistan’s overall fiscal surplus contracted 40pc to Rs1.273 trillion in July-September, compared with Rs2.12 trillion in the same period a year earlier, Dawn reported, citing Ministry of Finance data. The surplus represented 0.9pc of GDP, down from 1.7pc, while the primary balance narrowed to 2.1pc of GDP from 2.8pc.

Total revenue fell to Rs6.004 trillion from Rs6.2 trillion, even though tax receipts rose to Rs3.387 trillion from Rs3.153 trillion. Lower non-tax income, including reduced State Bank profits, contributed to the decline, while spending climbed 16pc to Rs4.73 trillion and interest costs rose more than 23pc to Rs1.7 trillion. Provincial cash surpluses were down 23pc at Rs600 billion, with Balochistan moving from a surplus to a Rs16 billion deficit.