Govt to present Rs17.5 trillion Budget for FY2026-27 today

ISLAMABAD: The federal government is set to present the budget for the fiscal year 2026-27 in the National Assembly today (Friday), with a proposed outlay of around Rs17.5 trillion.

Finance Minister Muhammad Aurangzeb will present the budget during the National Assembly session scheduled to begin at 3pm.

According to sources, the government is expected to set a tax revenue target of Rs15.267 trillion, while Rs7.824 trillion has been allocated for debt servicing. The proposed defence budget is expected to be Rs3 trillion.

The budget may also include an increase in salaries and pensions for government employees. In addition, the government plans to collect Rs1.727 trillion through the petroleum levy.

For the next fiscal year, the government is likely to set an export target of $32.8 billion and an import target of $70 billion.

Sources said no major new development projects are expected, as the government plans to focus on completing ongoing schemes. The government is also considering ending the tax exemption currently available to the former FATA regions.

Before the budget presentation, Prime Minister Shehbaz Sharif will chair a federal cabinet meeting to approve the budget proposals.

Meanwhile, opposition parties have decided not to boycott the budget session and will continue their protests inside and outside parliament.

Economy Grew 3.7% in FY2025-26

A day earlier, the government released the Pakistan Economic Survey 2025-26. Finance Minister Muhammad Aurangzeb said Pakistan’s economy grew by 3.7% during the outgoing fiscal year.

He said economic growth remained below the target because of regional tensions, floods, and global economic challenges. Inflation, exports, and tax collection also faced pressure during the year.

According to the survey, Pakistan’s economy reached $452 billion, while per capita income increased to $1,901. Foreign direct investment reached $1.4 billion, and foreign exchange reserves rose to $20.6 billion.

The agriculture sector grew by 2.89%, the industrial sector by 3.51%, and the services sector by 4.09%.

Officials said the government remains focused on maintaining economic stability and supporting long-term growth in the coming fiscal year.