ISLAMABAD: The federal government is scheduled to present the 2026-27 federal budget in the National Assembly today, proposing an estimated outlay of Rs17.5 trillion aimed at balancing economic growth with fiscal discipline.
Finance and Revenue Minister Senator Muhammad Aurangzeb will deliver the budget speech during the National Assembly session set to begin at 3:00pm, following the approval of the financial plan by the federal cabinet at a meeting chaired by Prime Minister Shehbaz Sharif at Parliament House.
According to sources, the government is expected to set an ambitious tax collection target of Rs15.267 trillion, while allocating Rs7.824 trillion for debt servicing and approximately Rs3 trillion for defence expenditures.
The budget is also likely to include a salary and pension increase for government employees, alongside a plan to generate Rs1.727 trillion through the petroleum levy.
For the external sector, the government is expected to target exports worth $32.8 billion and imports of around $70 billion during the next fiscal year.
Rather than launching new development initiatives, the government intends to prioritize funding for ongoing infrastructure and public sector projects. Sources also indicate that tax exemptions currently enjoyed by the former Federally Administered Tribal Areas (Fata) may be withdrawn.
Opposition to Continue Protests
Despite political differences, opposition parties have decided to attend the budget session instead of boycotting it. Following a joint parliamentary meeting, opposition leaders announced they would continue protests both inside and outside parliament.
They also reiterated their demand for a meeting with and release of Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan, pledging to sustain their protest movement until their demands are met.
Economic Survey Highlights Mixed Performance
Ahead of the budget announcement, the government released the Pakistan Economic Survey 2025-26, showing that the country’s economy expanded by 3.7%, marking its strongest growth in four years but still falling short of the official target.
Finance Minister Aurangzeb attributed the slower-than-expected performance to a combination of global tariff disputes, devastating floods, and Middle East tensions, which also pushed inflation back into double digits.
Pakistan’s economy reached a record $452 billion in size, compared to $408 billion a year earlier, while per capita income increased to $1,901 from $1,751. In local currency terms, the economy grew to Rs126.9 trillion, an increase of 11.3% over the previous fiscal year.
The exchange rate remained relatively stable at Rs280.65 per US dollar, while net foreign direct investment reached $1.4 billion, mainly driven by inflows from China and Hong Kong, with the power and financial sectors attracting the largest investments.
Foreign exchange reserves stood at $20.6 billion as of April 17, 2026, including $15.1 billion held by the State Bank of Pakistan, reflecting stronger external buffers.
The survey also reported a fiscal deficit of 0.7%, a primary surplus of 3.2%, and a current account surplus of $72 million during July-March.
Sector-wise, agriculture grew by 2.89%, industry expanded by 3.51%, supported by 6.11% growth in large-scale manufacturing, while the services sector, which contributes over 58% of GDP, recorded 4.09% growth, led by robust expansion in information and communication services.
However, the report highlighted ongoing social challenges, with the poverty rate standing at 28.9% and unemployment rising to 7.1%, underscoring the need for sustained reforms and broader economic inclusion.
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