ISLAMABAD: Pakistan’s fiscal deficit stood at Rs2.03 trillion, or 1.6% of GDP, during July-May FY2025-26 after provincial governments generated a Rs1.31 trillion revenue surplus.
The federal budget deficit remained higher at Rs3.34 trillion, equivalent to 2.6% of GDP, before the provincial surplus was incorporated into the consolidated fiscal position.
Official data showed that petroleum and climate levies generated more than Rs1.478 trillion during the 11-month period. Petroleum levy collections reached Rs1.432 trillion, while the climate support levy contributed Rs45.968 billion.
The State Bank of Pakistan transferred Rs2.428 trillion in surplus profit. Together, State Bank profit, petroleum levy and climate levy generated Rs4.82 trillion in non-tax revenue against a full-year target of Rs5.14 trillion.
Federal Board of Revenue collections stood at Rs11.228 trillion, lifting gross federal receipts to Rs16.08 trillion. After Rs6.6 trillion was transferred to provinces through the National Finance Commission Award, grants and subventions, net federal revenue fell to Rs9.38 trillion.
Total federal expenditure reached Rs12.73 trillion. Current spending accounted for Rs12.15 trillion, including Rs6.163 trillion in interest payments and Rs2.11 trillion in defence expenditure. Interest costs alone consumed more than half of current expenditure.
Read: Pakistan Economic Survey 2024–25: 2.7% GDP Growth, Fiscal Deficit Falls
Public Sector Development Programme spending reached Rs578 billion during July-May. Minister for Planning Ahsan Iqbal said the government later utilised the full annual PSDP allocation by June 30, 2026.
The federal government had targeted an overall full-year deficit of Rs3.77 trillion, or 3% of GDP. The Ministry of Finance has yet to release reconciled figures for the complete fiscal year.
