- Tax revenue target proposed at Rs 15.267 trillion.
- The defense allocation is expected to reach Rs 3 trillion.
- The opposition is planning protests during the budget process.
ISLAMABAD: The federal government is set to present the budget for the financial year 2026-27 in the National Assembly today (Friday), with an estimated outlay of around Rs17.5 trillion.
Finance and Excise Minister Senator Muhammad Aurangzeb will present the budget for 2026-27 in the National Assembly, whose session will begin at 3 p.m.
Sources said Pakinomist news that the government is expected to set a tax revenue target of Rs 15.267 trillion, while Rs 7.824 trillion is earmarked for debt servicing. The proposed defense allocation is expected to be Rs3 trillion.
Sources added that the government is also considering an increase in salaries and pensions of government employees. The budget is expected to include a plan to collect Rs1.727 trillion through the petroleum tax.
For the coming fiscal year, the government is likely to set an export target of $32.8 billion and an import target of $70 billion.
No new development schemes are expected to be initiated under the budget, but resources will instead be focused on completing ongoing projects.
Sources further said the government may withdraw the tax exemption currently available to the erstwhile Federally Administered Tribal Areas (Fata).
Ahead of the budget presentation, Prime Minister Shehbaz Sharif has called a federal cabinet meeting at Parliament House at 2.30pm today to approve the proposed budget.
Finance Minister Aurangzeb will brief cabinet members on key features of the budget before its formal presentation in Parliament.
Meanwhile, the opposition has decided not to boycott the budget meeting.
The decision was made during a joint parliamentary party meeting of opposition parties, which decided to continue the protests both inside and outside parliament.
Opposition leaders also reiterated their demand for a meeting with and release of Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan, vowing to continue their protest campaign until such a meeting takes place.
‘Economy grows 3.7 per cent. in FY26’
A day earlier, the government unveiled the Pakistan Economic Survey (PES) for FY2025-26, in which FinMin Aurangzeb said Pakistan’s gross domestic product (GDP) reached its highest ever – 3.7 per cent. – but the South Asian nation missed its growth target due to external shocks.
Flanked by his cabinet colleagues, FinMin told reporters that the nation – hit hard by an energy crisis due to tensions in the Middle East – missed its expected growth target of 4% despite recording its highest GDP growth of 3.7% in four years.
The GDP growth rate was 3.7% against the expected target of 4.2%. Inflation rose in the wake of the US-Iran war and reached double digits. Exports fell, imports rose, FBR’s tax collection targets were missed and public debt in absolute terms rose in 2025-26.
Income per per capita rose to $1,901 in 2025-26 compared to $1,751 in the previous fiscal year. The size of Pakistan’s economy in dollar terms touched $452 billion in FY26 against $408 billion in the previous fiscal year. In rupee terms, the size of the economy stood at Rs 126.9 trillion, showing an increase of 11.3% from the previous year’s Rs 114 trillion. The exchange rate remained stable at Rs280.65 per US dollar compared to Rs279.35 per US dollars in FY2025.
Net foreign direct investment recorded inflows of $1.4 billion, led by China and Hong Kong, with the power sector and financial services attracting the largest shares. Per As of April 17, 2026, foreign reserves stood at $20.6 billion, including $15.1 billion held by the State Bank of Pakistan (SBP), reflecting strengthened external buffers. During July to March, the budget deficit was 0.7%, while the primary surplus was 3.2%. During July to March, the balance of payments surplus was 72 million dollars.
“This Economic Survey for 2025-26 tells the story of the outgoing financial year. Three major factors tested Pakistan’s resilience – tariff war, floods affecting the country’s largest province and ME conflict – resulting in lower growth while inflation also returned,” Aurangzeb said.
The poverty rate in Pakistan stood at 28.9% and unemployment rose to 7.1% in 2024-25.
The minister said that Pakistan would have to avoid a boom-and-bust cycle as accelerated growth resulted in the creation of double deficits; however, the government did not repeat this kind of higher growth. He said that there were no sacred cows and that everyone should pay their due taxes.
The agriculture sector registered a growth of 2.89%, driven by key crops and livestock. The industrial sector had a growth of 3.51%, supported by strong growth (6.11%) in large scale manufacturing (LSM). The service sector, as the largest contributor to GDP (58.42% of GDP), grew by 4.09%, supported by strong growth in information and communication services (7.52%).
