Islamabad: Pakistan has recorded a fiscal surplus for the third consecutive year during the first quarter of the fiscal year 2026-27, reflecting continued fiscal discipline and progress towards economic stability.

According to official figures, the fiscal surplus stood at Rs1.274 trillion, equivalent to 0.9 per cent of Gross Domestic Product (GDP), while the primary surplus reached Rs2.974 trillion, or 2.1 per cent of GDP.

The primary surplus exceeded the budget target by Rs239 billion, registering an increase of 8.7 per cent.

Pakistan recorded a fiscal surplus of Rs1.896 trillion in the first quarter of FY2025, Rs2.119 trillion in FY2026 and Rs1.274 trillion in FY2027.

After recording first-quarter fiscal deficits for 23 consecutive years, the country has maintained a fiscal surplus for the past three years.

The first quarters of the last three fiscal years also recorded three of the highest primary surpluses in 26 years, with the figure exceeding Rs2.9 trillion each year.

During FY2026, the fiscal deficit was reduced to 2.6 per cent of GDP, its lowest level in 22 years. The primary surplus reached 2.9 per cent of GDP, the highest level recorded since at least FY2001.

Pakistan also maintained primary surpluses for three consecutive fiscal years, from FY2024 to FY2026, while interest payments declined by 22 per cent during FY2026.

Despite introducing tax relief measures in the FY2027 budget, the government maintained fiscal discipline during the first quarter and kept expenditures under control.

The official statement said continued fiscal surpluses, financial reforms and sustainable debt management would strengthen Pakistan's fiscal credibility, economic resilience and prospects for sustainable development.