Pakistan’s fiscal balance in the outgoing first half of FY23 posted a deficit of around Rs. 1.7 trillion, up 23 percent compared to the deficit during the same period of the previous fiscal year.
In terms of percentage of GDP, the deficit arrived at 2 percent in 1HFY23, the same as last year’s corresponding period figure.
However, the primary balance during 1HFY23 posted a surplus of Rs. 890 billion (1.1 percent of GDP) compared to a surplus balance in the primary account of Rs. 81 billion witnessed in the same period last year (0.1 percent of GDP).
Primarily, total revenue growth of 19 percent in 1HFY23 to Rs. 4.7 trillion aided the fiscal balance, translating to 5.6 percent of GDP.
The total tax revenue collection was up by 17 percent YoY to Rs. 3.7 trillion. The Federal Board of Revenue (FBR) taxes clocked in at Rs. 3.4 trillion during the period, 17 percent YoY higher than 1HFY22’s collection of Rs. 2.9 trillion.
Growth in indirect taxes remained flat during 1HFY23 from last year’s Rs 1.9 trillion. This was mainly on the back of flat growth in sales tax clocking in at Rs. 1,272 billion and a 3 percent YoY decline in Customs Duty to Rs. 467 billion.