The Pakistan federal budget 2026-27 was presented in the National Assembly, where Finance Minister Muhammad Aurangzeb unveiled a budget exceeding Rs18 trillion amid ongoing economic and security challenges.
During his budget speech, the finance minister expressed gratitude to coalition partners and said presenting the third budget of the government was an honour. He highlighted national progress and described recent developments as significant milestones for Pakistan.
He stated that Pakistan’s economic indicators have improved, including growth in manufacturing and services sectors, along with an increase in GDP size and per capita income. He also pointed to improved foreign exchange reserves and stronger remittance inflows.
According to the finance minister, defence remains a top priority in the Pakistan federal budget 2026-27, with Rs3 trillion allocated for national security. He also announced allocations for civil administration and other essential government operations.
The budget shows major allocations for debt servicing, pensions, subsidies, and emergency expenditures. A large portion of spending is directed towards interest payments, reflecting the country’s fiscal burden.
The finance minister also shared that the Public Sector Development Programme has been allocated Rs1 trillion, while overall federal expenditures are projected at over Rs17 trillion.
He further said that tax reforms have improved revenue collection, with the Federal Board of Revenue’s tax-to-GDP ratio increasing. He added that fiscal deficit levels have reduced compared to previous years.
The Pakistan federal budget 2026-27 sets a tax revenue target of over Rs15 trillion, with expectations of continued economic stabilization and gradual growth in the coming fiscal year.
