Fuel levy yields lowest fiscal deficit in nearly three decades

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• Gap shrinks to Rs856bn, or 0.7pc of GDP, during July-March

• Provincial surpluses, higher PDL collections, lower debt servicing drive improvement

• Revenue-to-GDP ratio falls; defence, pension, subsidy expenditures rise

ISLAMABAD: Supported by higher-than-targeted provincial contributions, strong petroleum levy collections and lower interest payments during the first three quarters of the current fiscal year, Pakistan recorded its lowest fiscal deficit in at least 27 years at 0.7 per cent of GDP, despite a decline in revenue ratios and increases in most expenditure heads except debt servicing.