ISLAMABAD: Backed by record interest income of the State Bank of Pakistan (SBP), a 30 per cent surge in petroleum levy collection and strong provincial cash surpluses, the government on Friday reported one of its rare fiscal surpluses — at 1.6pc of GDP — in the first quarter of the current fiscal year, slightly below last year’s 1.7pc.

According to the Ministry of Finance’s fiscal operations report for July-September 2025, the overall budget balance showed a surplus of Rs2.12 trillion in absolute terms, up 10pc from Rs1.896tr in the same period last year. As a share of GDP, the surplus slipped marginally from 1.7pc to 1.6pc.

Last year eventually closed with a 5.4pc deficit, as rising expenditures gradually offset the one-time impact of SBP profits.

The primary balance — the difference between total revenue and expenditure, excluding interest payments........

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