KARACHI: Pakistan posted a fiscal deficit of less than 1 percent of its gross domestic product (GDP) between July 2025 and March 2026 for the first time in its history, an official said on Tuesday, as the government tightened spending and boosted revenues.
The latest data reflects Pakistan’s fiscal deficit declined to just 0.7 percent of GDP during nine months of this fiscal year, compared to 2.6 percent during the same period last year.
Khurram Schehzad, and adviser of the finance minister, said the development shows a broader shift toward credible macroeconomic management, stronger sovereign fundamentals, and sustainable growth.
“The Primary Surplus reached 3.2 percent of GDP in 9MFY26, following an exceptionally strong surplus of 3.0 percent in 9MFY25,” he said on X. “This reflects improving public finances alongside economic stability and growth recovery.”
The statement came days after the International Monetary Fund (IMF) executive board completed reviews of some of its agreements with Pakistan, clearing the way for the South Asian nation to access about $1.32 billion in fresh funding immediately.
The lender said Pakistan’s policy efforts have delivered significant progress in stabilizing the economy and rebuilding confidence, amid a challenging global environment.
Fiscal performance has been strong, with a primary surplus of 1.6 percent of GDP expected to be achieved in FY26, in line with targets, it added.
Schehzad noted that Pakistan’s economy has historically faced persistent fiscal and external deficits, but both have improved simultaneously this fiscal year, with the current account being in surplus.
“This reinforces macroeconomic stability through fiscal consolidation, reserve accumulation, exchange rate stability, moderating inflation, and improving investor sentiment,” he added.
