ISLAMABAD: The federal government is set to present the Budget 2026–27 today in the National Assembly, with a total outlay of approximately Rs17.5 trillion, marking one of the largest fiscal frameworks in the country’s history.
The National Assembly session has been convened at 3:00 PM at Parliament House, where the finance minister will unveil the federal budget along with key economic targets, taxation measures, and development priorities for the upcoming fiscal year.
According to budget documents, the government has proposed a tax revenue target of Rs15,267 billion, while non-tax revenue is estimated at Rs2,767 billion. The overall economic growth target has been set at 4%, with inflation projected to remain around 8.2%.
On the expenditure side, Rs1,727 billion is expected from petroleum levy collections, while a major portion of the budget Rs7,824 billion is likely to be allocated for debt servicing, underscoring continued pressure from interest payments on public debt. Defence spending is projected at around Rs3 trillion.
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In the external sector, exports are estimated at $32.8 billion, while imports are projected at $70 billion, resulting in a trade deficit expected to exceed $37 billion.
Sector-wise growth targets include 3.8% for agriculture, 4% for industry, 4.5% for large-scale manufacturing, and 4.2% for services, reflecting cautious growth expectations across key segments of the economy.
The government has also set an ambitious target of creating 2 million new jobs, including 1.1 million in services, 500,000 in industry, and 400,000 in agriculture, as part of its employment generation strategy.
The National Economic Council (NEC) has already approved the macroeconomic framework along with a National Development Plan worth Rs3,669 billion. The Public Sector Development Programme (PSDP) is expected to be fixed at around Rs1,000 billion for the next fiscal year.
Sources indicate that Rs2,218 billion may be allocated for provincial development projects, while a combined federal-provincial adjustment of Rs1,046 billion in development savings is also under consideration.
Provincial allocations under discussion include Rs701 billion for Punjab, Rs110 billion for Sindh, and Rs109 billion for Khyber Pakhtunkhwa. A proposal is also being considered to restrict the launch of new development schemes, except in the defence and interior sectors.
On the taxation side, the government is considering a Rs50 billion relief package for salaried individuals, along with a possible restructuring of income tax slabs from six to eight categories.
Under the proposed reforms, individuals earning above Rs183,000 per month may receive tax relief, while reductions in tax rates are also being considered for higher income brackets. Income up to Rs267,000 per month could see the tax rate reduced from 25% to 20%, while revised slabs for higher earners include 29% and 32% for mid-to-upper income groups.
For higher-income taxpayers, the maximum tax rate of 35% is expected to remain in place, while proposals also include the abolition of surcharge on annual incomes exceeding Rs10 million.
Overall, the Budget 2026–27 reflects a combination of fiscal consolidation, revenue expansion, development spending priorities, and targeted relief measures, particularly for the salaried class, as the government seeks to balance economic growth with financial stability.
