Fiscal operation data unveiled: Country posts Rs4.105trn primary balance in H1

ISLAMABAD: Pakistan posted a primary balance of Rs 4,105 billion, equivalent to 3.2 percent of gross domestic product (GDP) in the first half of the current fiscal year 2025-26, according to the Finance Division.

Fiscal operation data released by the Finance Division noted that the cost of debt servicing continues outpacing the defense and development expenditures with a wide margin in the first half of the current fiscal year.

The debt servicing consumed Rs 3,563 billion, while defense consumed Rs 1,044 billion and PSDP consumed Rs 238 billion in the first six months of CFY26.

The statistical discrepancy continues to persist and stands at Rs 413.3 billion in the first half of the current fiscal year against 439.7 billion in the same period of the previous fiscal year.

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Punjab’s provincial government showed a statistical discrepancy of Rs 144.4 billion out of the total provincial discrepancy of Rs 342 billion.

The fiscal surplus of Rs 542 billion in the first half (July-Dec) period of the current fiscal year, compared to a deficit of Rs 1,537 billion in the same period of the previous financial year.

The primary balance, a surplus of Rs 4,105 billion, equivalent to 3.2 percent of GDP, against 3,600 billion or 3.1 percent of GDP in the same period of the last financial year.

According to the fiscal operation released by the Ministry of Finance on Friday, disclosing that total revenues of the country fetched Rs 10,683 billion in the first six months of CFY 2026, out of which the FBR collected Rs 6160 billion and non-tax revenue of Rs 3954 billion.

Out of non-tax revenues of Rs 3954 billion, the petroleum levy fetched Rs 823 billion in the first six months of the current fiscal year. The SBP profit which was paid out in the first quarter, was the largest single item in the non tax revenue to the tune of Rs 2428 billion.

The Captive Power Plants (CPP) levy fetched Rs 8.8 billion, carbon levy Rs 25.485 billion in first six months of CFY26. The PTA profit stood at Rs 24.8 billion, royalties on oil and gas Rs 61.14 billion, passport fees Rs 26.7 billion, natural gas development surcharge Rs 32.3 billion, receipt of ICT Administration Rs 17 billion and others.

The gross revenue receipts of the federal government stood at Rs 10,008 billion so the net revenue receipts were left at Rs 6,392 billion in July-Dec period of FY26.

Now total expenditure of the federal government remained at Rs 7,029 billion out of which the current expenditure stood at Rs 6,836 billion. The markup payment of domestic debt stood at Rs 3,089 billion and foreign debt repayment of Rs 474.314 billion.

The pension bill consumed Rs 504 billion, the running of the government Rs 380.6 billion subsidies Rs 462.6 billion and grants to provinces and others Rs 880 billion.

Copyright Business Recorder, 2026