Pakistan recorded a budget deficit of Rs856 billion during the first nine months of the current fiscal year 2026-27, showing a major improvement in the country’s financial position compared to the same period last year.
According to the latest fiscal operations report released by the Ministry of Finance Pakistan, the budget deficit stood at just 0.7 percent of GDP during the July to March period. In comparison, the deficit during the same period last year was 2.6 percent of GDP, showing a noticeable decline.
The report also showed that Pakistan’s total government spending dropped by 4 percent on a yearly basis. During the first nine months, total expenditures were recorded at Rs15.65 trillion, lower than Rs16.33 trillion in the previous fiscal year.
At the same time, government revenues showed strong growth. Total revenues reached Rs14.79 trillion, up 11 percent from last year. Tax collection by the Federal Board of Revenue also increased by 10 percent, reaching Rs9.3 trillion.
Another positive sign came from Pakistan’s primary balance, which remained in surplus at Rs4.09 trillion. Interest payments also dropped by 23 percent compared to last year, helping reduce financial pressure on the government.
The latest numbers suggest that Pakistan’s economic managers are focusing on tighter spending, stronger tax collection, and financial discipline as the country continues working on economic reforms and long-term stability.