ISLAMABAD: The cost of debt servicing continues outpacing defense and development expenditures with a wide margin in the first half of the current fiscal year, suffocating economy under stringent conditions of the International Monetary Fund (IMF) programme.
The debt servicing for paying markup payment on the country’s accumulated total public debt consumed two times more resources as defense and development in the shape of Public Sector Development Programme (PSDP) in totality. The debt servicing consumed Rs3563 billion, while defense consumed Rs1044 billion and PSDP consumed Rs238 billion in the first six months of CFY26.
The statistical discrepancy continues to persist and stands at Rs413.3 billion in the first half of the current fiscal year against Rs439.7 billion in the same period of the previous fiscal year. Punjab government showed a statistical discrepancy of Rs144.4 billion out of the total provincial discrepancy of Rs342 billion.
Under the tight scrutiny and noose of the IMF programme, fiscal surplus of Rs542 billion in the first half (July-Dec) period of the current fiscal year, compared to a deficit of Rs1537 billion in the same period of the previous financial year. The primary balance, which is considered sacrosanct by the IMF, clinched a surplus of Rs4,105 billion, equivalent to 3.2 percent of GDP, against 3,600 billion or 3.1 percent of GDP in the same period of the last financial year.
The IMF’s upcoming review mission is expected to visit Islamabad by the end of the ongoing month or early next month for undertaking third review under the $7 billion Extended Fund Facility (EFF) programme. The IMF’s review mission will finalise the major contours of the next budget for 2026-27, especially on FBR’s taxation measures. According to the fiscal operation released by the Ministry of Finance on Friday, disclosing that total revenues of the country fetched Rs10,683 billion in the first six months of CFY 2026, out of which the FBR collected Rs6160 billion and non-tax revenue of Rs3954 billion.
Out of non-tax revenues of Rs3954 billion, the petroleum levy fetched Rs 823 billion in the first six months of the current fiscal year.
The SBP profit which was paid out in the first quarter, was the largest single item in the non-tax revenue to the tune of Rs2428 billion. The Captive Power Plants (CPP) levy fetched Rs8.8 billion, carbon levy Rs25.485 billion in the first six months of CFY26. The PTA profit stood at Rs24.8 billion, royalties on oil and gas Rs61.14 billion, passport fees Rs26.7 billion, natural gas development surcharge Rs32.3 billion, receipt of ICT Administration Rs17 billion and others.
