Pakistan reports its third consecutive first-quarter fiscal surplus, reversing a 23-year trend of deficits, with the primary surplus reaching Rs2.97 trillion.

ISLAMABAD, November 13, 2026: Pakistan has recorded a fiscal surplus of Rs1.274 trillion, equivalent to 0.9% of gross domestic product (GDP), during the first quarter of fiscal year 2026-27 (Q1FY27), marking a historic turnaround after 23 years of first-quarter fiscal deficits.

According to the latest fiscal operation released by the ministry of finance on Friday, the government also posted a primary surplus of Rs2.974 trillion, or 2.1% of GDP, exceeding the budget target by Rs239 billion, representing an improvement of 8.7%.

The achievement marks Pakistan’s third consecutive first-quarter fiscal surplus. The country recorded surpluses of Rs1.896 trillion in Q1FY25 and Rs2.119 trillion in Q1FY26, followed by Rs1.274 trillion in the corresponding quarter of FY27.

The latest figures also highlight improvements in primary balances, with the three highest first-quarter primary surpluses in the past 26 years recorded consecutively, each exceeding Rs2.9 trillion in nominal terms.

Pakistan’s fiscal performance also improved during FY26, when the fiscal deficit declined to 2.6% of GDP, its lowest level in 22 years. The primary surplus reached 2.9% of GDP, the highest since at least FY2001.

The government also reported three consecutive annual primary surpluses between FY24 and FY26, while interest expenditure declined by 22% in FY26.

Despite providing tax relief under the FY27 budget, tax collections exceeded the government’s target during the first quarter.

The sustained fiscal surpluses are expected to support sovereign credibility, improve debt sustainability and strengthen the foundations for sustainable economic growth.