KARACHI: The federal government has forecast a significant 40 percent drop in receipts under the State Bank of Pakistan’s profit during the next fiscal year (FY27).
According to budget estimates for the next fiscal year, the federal government has projected receipts of Rs 1.435 trillion on account of SBP’s profit compared to Rs 2.43 trillion actually received in FY26. This shows that the federal government expects receipts under SBP’s profit to plunge by 40 percent in the next fiscal year.
As per Section 42 of the SBP (Amendment) Act, 2022, the State Bank is required to transfer surplus profit to the Federal Government and it transferred some Rs 2.43 trillion in FY26 against estimates of Rs 2.4 trillion.
The SBP’s profit accounts for nearly 98 percent of total receipts under the head of civil administration and other functions in FY26. Consequently, the projected decline in the state bank’s profit is expected to reduce total receipts under this category from Rs2.467 trillion in FY26 to Rs1.480 trillion in FY27.
Receipts under civil administration and other functions includes Rs 5.887 billion receipts from general administration, Rs 31.47 billion from defense, Rs 4.091 billion from law and order, Rs 1.339 billion through community services, and Rs 1.643 billion from the social services.
With a high policy rate, SBP earned a strong profit of Rs 2.5 trillion, out of which it transferred some Rs 2.43 trillion to the federal government during this fiscal year. This transfer helped the federal government ease the overall debt burden on the economy.
After receiving profit from the SBP, on August 29, 2025, the Debt Management Office Ministry of Finance executed monumental repayment of Rs 1.133 trillion, which brings the total early retirement of SBP debt to Rs 1.633 trillion during calendar year 2025.
At the same time, the transfer of SBP profits led to a sharp decline in net budgetary borrowing from the banking system, creating space for banks to increase their lending to the non-government sector.
Sources said the federal government has revised this estimates downward side due to massive cut in the key policy rate, which is currently stood at 11.50 percent down from its peak 22 percent in 2023.
Copyright Business Recorder, 2026
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