Karachi: Pakistan reported a fiscal surplus of PkR1.3 trillion, or 0.9% of GDP, for the first quarter of fiscal year 2027. This marks a 40% decrease from the previous year, when the surplus was PkR2.1 trillion, or 1.7% of GDP. The primary surplus also saw a reduction, standing at PkR3.0 trillion, or 2.1% of GDP, representing a 15% year-over-year decline.

According to AKD Securities Limited, total revenues fell by 3% year-over-year during the period, influenced largely by a 14% decrease in non-tax revenues. In contrast, tax revenues experienced a 7% increase, largely due to a rise in direct taxes, up by 6%, and sales tax collections, which increased by 12%. The drop in non-tax revenues was primarily due to a decline in the surplus profit of the State Bank of Pakistan, which fell by 20% to PkR1.9 trillion, while collections from the petroleum levy rose modestly to PkR382 billion, marking a 3% increase.

Total expenditures rose by 16% year-over-year in the first quarter, with markup payments increasing by 23% to PkR1.7 trillion, driven by monetary tightening. The government utilized the fiscal surplus and secured PkR609 billion from external sources to retire PkR1.9 trillion in domestic debt during the quarter.