Economic data
Rising interest payments, uplift spending strained Pakistan's fiscal position in early FY27: ministry
ISLAMABAD: Despite a massive 90 per cent cut in subsidies and higher-than-targeted revenue collection, Pakistan’s fiscal and current account buffers weakened at the beginning of the current fiscal year (FY27) owing to an almost 37pc increase in interest payments coupled with greater development spending. The “overall fiscal surplus narrowed to 0.8pc of GDP (Rs1.198 trillion), compared with 1.7pc of GDP (Rs2.124tr)” in the corresponding period of FY26, said the Ministry of Finance’s Monthly Economic Update & Outlook report issued on Thursday. “Similarly, the primary surplus declined to 1.6pc of