The Ministry of Finance Tuesday claimed a major improvement in the country’s fiscal indicators, announcing that Pakistan’s fiscal deficit had fallen below one percent for the first time in the country’s history during the first nine months of the current fiscal year.
According to the Finance Ministry, the fiscal deficit during the July-March period of the ongoing fiscal year stood at 0.7 percent of the Gross Domestic Product (GDP), compared to 2.6 percent recorded during the same period of the previous fiscal year.
Officials described the development as a significant sign of fiscal consolidation and improved financial management amid ongoing economic stabilisation efforts.
The ministry also said Pakistan achieved the highest-ever primary budget surplus in its history during the first nine months of the current fiscal year.
According to the official figures, the primary surplus reached 3.2 percent of GDP, surpassing the previous year’s level of 3 percent recorded during the corresponding period.
A primary surplus refers to the government’s fiscal balance excluding interest payments on debt and is considered an important indicator for assessing a country’s underlying fiscal health.
The Finance Ministry attributed the improvement in fiscal indicators to enhanced revenue collection, expenditure management and economic stabilisation measures implemented during the current fiscal year.
Economic experts view the reduction in the fiscal deficit and increase in the primary surplus as key benchmarks linked to Pakistan’s commitments under international financial programmes, including reforms aimed at strengthening macroeconomic stability.
The government has repeatedly maintained that sustained fiscal discipline, improved tax revenues and controlled expenditures remain essential for reducing borrowing needs and restoring investor confidence in the economy.
Reporter: Waqas Azeem