Punjab led Pakistan's provinces by sending Rs609 billion as cash surplus to the Centre in July-December 2025, followed by Sindh with Rs354 billion. Khyber Pakhtunkhwa transferred Rs175 billion, while Balochistan sent Rs41 billion, according to the Ministry of Finance. Together, provinces returned Rs1.18 trillion, nearing the Rs1.464 trillion IMF target for the year. The federal fiscal balance improved to a Rs542 billion surplus from last year's Rs1.5 trillion deficit, marking a fourfold turnaround. However, the country's revenue-to-GDP ratio fell to 8.2% from 8.5% despite reforms. Tax collection dropped slightly, with tax-to-GDP at 5.2% down from 5.3%. Non-tax revenue also decreased to 3.1% from 3.2%. The Federal Board of Revenue collected Rs6.161 trillion, a 10% rise year-on-year. Provincial tax revenue grew 28% to Rs569 billion. Expenditure fell to 7.8% of GDP due to lower interest costs after the State Bank cut rates from 22% to 11%. Despite fiscal improvements, primary balance stayed around 3.2% of GDP, showing limited expense control. Punjab increased its surplus by 83%, Sindh by 34%, and KP more than doubled surplus compared to last year, while Balochistan's surplus halved.