ISLAMABAD:
The federal government is likely to set a GDP growth target of 5.1 percent and a tax collection target of over Rs 15.5 trillion. in the budget for the next fiscal year (2026-2027), although global lenders expect the economy to expand at a slower pace.
Finance Ministry sources said preparations for the upcoming budget are in the final stages, with proposals received from various stakeholders under review and workable suggestions incorporated.
The budget is being adjusted to benchmarks agreed under the International Monetary Fund (IMF) program.
The global lender’s review mission is expected to visit Pakistan next month to hold detailed consultations before finalizing the proposals.
The government is likely to present the budget in parliament in the first ten days of June.
According to the sources, the proposed growth target of 5.1 percent represents an increase over the 4.2 percent target set for the current fiscal year.
However, the IMF, the World Bank (WB) and the Asian Development Bank (ADB) have predicted lower growth than the government’s estimate.
On the revenue side, the government is considering setting a tax target of over Rs 15.5 trillion for 2026-2027, compared to Rs 14.131 trillion for the current fiscal year.
Despite a downward revision of targets, the Federal Board of Revenue (FBR) has recorded a deficit of Rs610 billion in the first nine months of the current financial year.
To broaden the tax base, the government aims to add one million new tax filers in June this year, followed by another 750,000 in March next year.
