Govt to Unveil Rs17.6 Trillion FY26 Budget in National Assembly Today

Budget Set Against a Challenging Economic Backdrop

Islamabad — The federal government, led by Finance Minister Muhammad Aurangzeb, will table the 2025–26 national budget—amounting to approximately Rs 17.6 trillion—in the National Assembly today at 5 pm under Speaker Ayaz Sadiq’s supervision . The budget presentation follows the unveiling of the Economic Survey of Pakistan and comes amid a backdrop of low growth and an ongoing International Monetary Fund (IMF) programme.

Key Financial Figures and Targets

Total outlay: Rs 17.6 trillion, down from Rs 18.78 trillion in FY25
Gross revenue: Projected at Rs 19.3–19.4 trillion, including FBR and non-tax sources
FBR tax target: Around Rs 14.0–14.13 trillion—a considerable increase from the Rs 12.33 trillion revised estimate for FY25
Non-tax revenues: Projected between Rs 4.0–5.2 trillion

Revenue targets hinge on expanding the tax base, which remains limited—only 1.3% of Pakistanis filed income tax returns in 2024 alongside implementing new taxes and removing exemptions across key sectors .

Proposed Salary, Pension, and Subsidy Measures

Public sector employees are expected to receive a 7.5–10% salary increase, alongside a disparity allowance of up to 30% for grades 1–16 . Pension hikes are tentatively set between 5–12.5%, emphasizing the government’s attempt to cushion rising inflation while maintaining fiscal discipline .

Subsidy allocations and federal grants are outlined as follows:

Pension bill: Rs 1.05 trillion
Subsidies: Rs 1.186 trillion
Grants: Rs 1.9 trillion

Defence, Debt Servicing, and Development Spending

Amid recent regional tensions, the defence budget is earmarked at Rs 2.55 trillion, marking approximately an 18–20% increase . Debt servicing claims a substantial portion of the outlay at around Rs 6.2 trillion , though alternate reports peg interest payments at Rs 8.2 trillion, down from Rs 9.7 trillion last year.

The Public Sector Development Programme (PSDP) has been allocated Rs 1 trillion, with provincial development sharing over Rs 8 trillion under the NFC Award while the federal share will be adjusted accordingly.

Growth, Deficit, and IMF Commitments

Pakistan aims for a 4.2% GDP growth in FY26, an improvement on the projected 2.7% for FY25 . The fiscal deficit is targeted at 4.8% of GDP, down from 5.9% .

Under the IMF-backed reform package, the budget emphasizes widening the tax net—covering agriculture, real estate, and retail—cutting subsidies, and containing current expenditures . Last month’s IMF review unlocked a $1 billion tranche, with further funding tied to budget execution.