Government targets higher tax collection, increased defence spending, and possible salary and pension relief amid economic challenges.
Image: CFI
The federal government will present the FY2026-27 budget in the National Assembly today, with a proposed outlay of approximately Rs17.5 trillion. Finance Minister Senator Muhammad Aurangzeb will unveil the fiscal plan after cabinet approval.
The budget is expected to set a tax revenue target of Rs15.267 trillion, allocate Rs7.824 trillion for debt servicing, and increase defence spending to Rs3 trillion. The government is also considering salary and pension increases for public sector employees.
Officials plan to generate Rs1.727 trillion through the petroleum levy, while exports are targeted at $32.8 billion and imports at $70 billion. No major new development projects are expected, with funding focused on completing ongoing schemes.
Meanwhile, opposition parties have decided to attend the budget session while continuing protests and demanding access to jailed former prime minister Imran Khan.
A day earlier, the government reported GDP growth of 3.7% for FY2025-26, below the 4.2% target. Despite economic pressures from regional conflicts and floods, Pakistan’s economy expanded to $452 billion, while per capita income rose to $1,901. However, inflation, unemployment, and public debt remained key challenges.
