Pakistan Fiscal Deficit Reaches 1.2% of GDP in 1HFY25, Mark-Up Payments Soar

Pakistan has recorded a fiscal deficit of 1.2 percent of GDP, amounting to Rs1,538 billion during the first six months of the ongoing fiscal year (1HFY25), according to data from the Finance Ministry.

The consolidated summary of federal and provincial fiscal operations for July-December 2024-25 shows that total revenue during the period stood at Rs9,227 billion, while total expenditure reached Rs8,201 billion.

Current expenditures rose significantly, standing at Rs7,702 billion—a 17 percent increase compared to the same period last year. Mark-up payments alone saw a steep rise of 22 percent, climbing from Rs4,220 billion in 1HFY24 to Rs5,142 billion during 1HFY25. On a quarterly basis, mark-up payments spiked by 194 percent, totaling Rs3,835 billion in the second quarter of FY25.

The non-tax revenue for the first half of FY25 surged by 82 percent, reaching Rs3,602 billion compared to Rs1,979 billion in the same period last year.

Despite the rise in expenditures, the primary balance remained positive, standing at 2.9 percent of GDP or Rs3,604 billion, nearly doubling from Rs1,812 billion recorded during the first six months of FY24.