Pakistan Budget for FY 2026-27

[VCheng]

Based on our previous discussions, I do agree that Pakistan's rupee falls by about 10% against the USD on yearly basis but since 2022 to 2024, it fell sharply and long due for correction.

Pakistan's GDP is not highly manipulated as it is strictly monitored by the IMF and compared to rest of the south asia, it is underperforming.

I can agree with the above. I can add to that Pakistan has indeed been able to stabilize the decline somewhat so that the macroeconomic situation is not in a free fall any more, as many were fearing a few years ago.

However, the impact of the war in the Gulf is going to add yet another layer of difficulty for Pakistan going forward, but it can also count on international support to help tide it over, it seems.

 

[Fatman17]

 

[hydrabadi_arab]

so whats the size of our GDP now?

411 billion usd was until last year...

$453bn for FY 2025-26 that end in June26.

 

[RocketLaw]

What a terrible situation for Pakistan’s economy.

Have we really been at around $200-400 billion GDP for almost 20 years now - wth?!

New updates recently:

The Republic of Turkiye has surpassed Indonesia's economy and become the country with the largest economy among Muslim-majority population countries.

Thus, today Türkiye holds the position of the largest Muslim-majority country both economically and militarily.

By GDP:
Turkiye - $1.64 Trillion
Indonesia - $1.54 Trillion
Saudi Arabia - $1.39 Trillion
United Arab Emirates - $622 Billion
Malaysia - $516 billion
Bangladesh - $511 billion
Egypt - $430 billion
Pakistan - $408 billion
Algeria - $317 billion
Iran - $300 billion

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[RocketLaw]

It’s unbelievable that there is no thread dedicated to Pakistan’s economy - where is it? Any Sticky thread?

Are we unable to understand essentials of the economy these days? Did we even pass math in school?

Example:
Turkish Economy - News & Updates

 

[Mujahid]

What a terrible situation for Pakistan’s economy.

Have we really been at around $200-400 billion GDP for almost 20 years now - wth?!

New updates recently:

The Republic of Turkiye has surpassed Indonesia's economy and become the country with the largest economy among Muslim-majority population countries.

Thus, today Türkiye holds the position of the largest Muslim-majority country both economically and militarily.

By GDP:
Turkiye - $1.64 Trillion
Indonesia - $1.54 Trillion
Saudi Arabia - $1.39 Trillion
United Arab Emirates - $622 Billion
Malaysia - $516 billion
Bangladesh - $511 billion
Egypt - $430 billion
Pakistan - $408 billion
Algeria - $317 billion
Iran - $300 billion

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We are even below Bangladesh.. So disappointing..

 

[hydrabadi_arab]

Since 2001 Pakistan achieved GDP growth rate of 5+ on 7 occasions.

2003 5.4%
2004 7.8%
2005 7.3%
2006 6.1%
2016 6.6%
2018 6.2%
2021 6.5 %

What a disaster. All followed by crash.

 

[Maea]

Lack of trust is the keyword here.

Pakistanis want to invest in Pakistan, billions of USD worth is sitting idle in our accounts( overseas pakistanis) just waiting to be invested in Pakistan.

With a pop of arounf 250 milions and land full of resources there is no way we stand at $450 billions.

 

[Watandar]

Lack of trust is the keyword here.

Pakistanis want to invest in Pakistan, billions of USD worth is sitting idle in our accounts( overseas pakistanis) just waiting to be invested in Pakistan.

With a pop of arounf 250 milions and land full of resources there is no way we stand at $450 billions.

Agree. Poor political stability and non existent rule of law means Pakistan cannot even get investment from its diaspora, let alone foreigners.

 

[ghazi52]

Pakistan's textile sector presents budgetary proposals to Aurangzeb​

• Pakistan's textile sector urged for 2026-27 budget reforms to cut costs, boost exports and modernise

May 12, 2026
By BR Web Desk

Finance Minister Muhammad Aurangzeb on Tuesday held an extensive meeting with a high-level delegation representing Pakistan’s textile and apparel sector, comprising leading chambers, associations, exporters and industry stakeholders from across the country.

The delegation presented a comprehensive set of proposals and recommendations for the Federal Budget 2026–27 aimed at strengthening the competitiveness, sustainability and long-term growth of the country’s textile sector and export industry, read an official statement.

During the meeting, the delegation emphasised the importance of maintaining a stable, growth-oriented and internationally competitive policy environment to enable the industry to effectively respond to evolving global market dynamics and increasing regional competition.

 

[ghazi52]

Documentation, taxes and exports: ICAP shares multiple proposals with Aurangzeb​

May 12, 2026
By Sohail Sarfraz

ISLAMABAD: The Institute of Chartered Accountants of Pakistan (ICAP) on Monday presented a range of proposals and recommendations relating to documentation, group taxation structures, export-oriented services, and harmonization of tax treatment across all sectors.

During a meeting with the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, at the Finance Division on Monday, discussions also focused on measures aimed at improving competitiveness, facilitating investment, strengthening ease of doing business, and supporting effective revenue mobilization alongside the broadening of the tax base.

Welcoming the delegation, the Finance Minister emphasized the importance of continued engagement with professional bodies and industry stakeholders to ensure that economic and taxation policies remain responsive, practical, and aligned with the country’s broader reform objectives.

The Finance Minister shared the government’s ongoing efforts to transform the tax administration system through reforms centered around people, processes, and technology.

 

[ghazi52]

Revenue target in FY27 budget: Govt mulls Rs780bn enforcement measures instead of new taxes​

• Taxpayers can expect relief in the next budget as the government avoids new taxes, focusing instead on robust enforcement

May 12, 2026
By Sohail Sarfraz

ISLAMABAD: The government is unlikely to introduce any new taxes in the upcoming budget, as it plans to achieve next year’s revenue target through enforcement and administrative measures estimated at Rs 778-780 billion.

Sources told Business Recorder that the federal budget for the next fiscal year is expected to provide relief to taxpayers, with the authorities relying on alternative revenue-generation measures to offset potential revenue losses.

If the government provides relief to the salaried class, the corporate sector, and taxpayers paying Super Tax, the revenue loss would be bridged through alternate revenue measures. However, no new tax would be imposed in the coming 2026-27 budget.

The revenue measures would be taken only to overcome revenue loss on account of relief measures. But the net impact of taxation measures would be zero in 2026-27.

 

[ghazi52]

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[ghazi52]

IMF funds arrive as govt opens pre-budget talks​

Mubarak Zeb Khan Shahid Iqbal
May 14, 2026



Finance Minister Muhammad Aurangzeb chairs a meeting with the visiting IMF mission led by Mission Chief Iva Petrova in Islamabad. —photo courtesy @@PakTVGlobal/X

• Aurangzeb, mission discusses revenue targets, tax measures, reforms, fiscal strategy
• Lender stresses need for fiscal discipline

ISLAMABAD / KARACHI: Pakistan has received fresh inflows of $1.3 billion from the International Monetary Fund (IMF), which has pushed the State Bank of Pakistan’s (SBP) foreign exchange reserves above $17bn and closer to the central bank’s target of $18bn.

Meanwhile, a visiting IMF mission on Wednesday began a pre-budget review of Pakistan’s economy, focusing on revenue collection targets, proposed tax measures, reforms and the fiscal strategy for 2026-27.

The Fund approved special drawing rights (SDR) worth 760 million for Pakistan under the Extended Fund Facility (EFF) and SDR 154 million under the Resilience and Sustainability Facility (RSF).

“The SBP has received SDR 914m (equivalent to about $1.3bn) under the EFF and RSF in value dated May 12, 2026, from the IMF,” the central bank said on Wednesday.

The SBP’s foreign exchange reserves have become highly critical for the economy as they help build confidence among importers and exporters, meet the trade deficit, stabilise the exchange rate and support debt servicing payments.

 

[ghazi52]

Pre-budget review

The review began in Islamabad, during which detailed technical discussions is expected on the budget framework and government proposals before subsequent approval under the programme.

The IMF team, led by Mission Chief Iva Petrova, is expected to remain in Pakistan for about six working days, likely until May 20.

According to an official statement, Finance Minister Muhammad Aurangzeb briefed the IMF delegation on Pakistan’s macroeconomic outlook, fiscal strategy, reform priorities and the government’s efforts to ensure sustainable economic stability and long-term growth.

The discussions focused on macroeconomic stabilisation efforts, preparations for the upcoming federal budget and reforms aimed at strengthening fiscal and external sustainability while supporting economic growth.