Rs18.8tr Budget for FY2026-27: Here’s everything you need to know

Total Budget Outlay Rs18,800 billion

The federal budget for FY2026-27 has been set at Rs18,800 billion. It covers all major government expenditures and development priorities.

Interest Payments Rs8,045 billion

A major share of Rs8,045 billion has been allocated for interest payments. This remains the largest expense in the budget.

Economic Growth Target 4 percent

The government has set a 4 percent GDP growth target for the coming year. Officials expect gradual recovery across key sectors.

Inflation Forecast 8.2 percent

Inflation is projected to remain around 8.2 percent. Authorities aim to control price pressures through fiscal measures.

Fiscal Deficit 3.6 percent of GDP

The fiscal deficit is expected at 3.6 percent of GDP. This reflects controlled but continued borrowing needs.

Primary Surplus 2 percent of GDP

The government aims for a 2 percent primary surplus. This indicates efforts toward fiscal stability.

Tax Revenue Rs15,264 billion

Tax collection is projected at Rs15,264 billion. This is significantly higher than the previous year’s Rs12,983 billion.

Provincial Contribution Rs8,848 billion

Provinces are expected to contribute Rs8,848 billion to federal revenue. This supports shared fiscal responsibility.

Revenue Distribution Rs13,250 billion

Rs13,250 billion has been allocated for distribution between federal and provincial governments. This follows national financial arrangements.

Non-tax Revenue Rs5,336 billion

Non-tax income is estimated at Rs5,336 billion. This includes income from state assets and services.

Net Federal Revenue Rs11,751 billion

Net federal revenue is projected at Rs11,751 billion after adjustments. It supports core government spending.

Federal PSDP Rs1,000 billion (Rs1,451 billion with adjustments)

Development spending under PSDP is Rs1,000 billion. It rises to Rs1,451 billion after inclusion of additional funds.

Provincial Development Rs2,224 billion

Rs2,224 billion has been allocated for provincial development projects. This focuses on infrastructure and public services.

State-Owned Enterprises Investment Rs451 billion

Rs451 billion is reserved for investment in state-owned enterprises. This supports strategic economic sectors.

Defence Budget Rs3,000 billion

Rs3,000 billion has been allocated for defence spending. Officials called it the top national priority.

Civil Administration Rs1,071 billion

Civil administration costs are set at Rs1,071 billion. This covers government operations and services.

Total Current Expenditure Rs17,495 billion

Overall current expenditure stands at Rs17,495 billion. This includes running costs of the government.

Pensions Rs1,169 billion

Rs1,169 billion is allocated for pension payments. This supports retired government employees.

Subsidies Rs1,091 billion

Subsidies worth Rs1,091 billion are planned. These mainly cover power and essential sectors.

BISP and Social Protection Rs280 billion

Rs280 billion is allocated for Benazir Income Support Programme and related regions. This aims to support low-income families.

Salary Increase 7 percent

Government employees’ salaries will rise by 7 percent. This provides partial relief against inflation.

Pension Increase 7 percent

Pensions are also increased by 7 percent. Retired employees will receive higher monthly support.

Minimum Wage Increase 10 percent

Minimum wage has been raised by 10 percent. This benefits low-income workers directly.

Income Tax Cuts Rs2.2 million–Rs7 million slabs

Tax rates have been reduced for salaried individuals earning between Rs2.2 million and Rs7 million annually. Relief ranges from 3 to 5 percentage points depending on income slab.

Super Tax Relief Rs150 million–Rs500 million businesses

Super tax is abolished for businesses earning Rs150 million to Rs500 million. For higher earnings, it is reduced from 10 percent to 8 percent.

Economy Size $452 billion

Pakistan’s economy has expanded to $452 billion. Officials called it a major milestone.

Foreign Reserves $17 billion

Foreign exchange reserves have increased to $17 billion. This is a strong improvement over previous years.

Remittances $41 billion projection

Remittances are expected to cross $41 billion. This would be the highest level in history.