Pakistan Budget for FY 2026-27

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Budgeting on hope

The budget offers relief today, but its revenue targets rest on a level of tax collection the government has yet to prove it can achieve.
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kimjongun said:
Highly inflated numbers , way far off reality
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More like well under the actual numbers which is probably around the $700 billion.

More registering and digitisation of everything in the country is going to steadily continue to increase the Nominal GDP numbers.
 
Pakistan Space Agency said:
Not like those PTI Shaikh Chillis who were convinced Pakistan will default and breakup between 2022-2024 because their "red line" was violated. 😉
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I just see that imran khan left at 6% GDP growth while even 4 years after his government ended, you are still struggling to get to even 4% mark. Ofcourse that inexperienced 6% growth was bad and this growth of 3.7% by experienced team is better then that. Its just that we dont know it's true bemefits and the difference between them both.

And please dont tell me that 6% figure was inflated by PTI government. Because that number was released like 2-3 months after his government ended (during PDM government).
 

Finance minister terms proposed FY27 budget as 'significant progress' in path to economic growth​

News Desk
June 13, 2026

Finance Minister Muhammad Aurangzeb has expanded upon the proposed budget for FY26-27, touting it as a key move towards the country’s economic growth.

“In this budget, we have made significant progress in that direction of travel [towards economic growth] that we spoke earlier about,” he said at the outset of his media briefing in Islamabad.

The minister affirmed that the government has “made comprehensive efforts to create an enabling environment” for an export-led growth, recalling the abolishment of an advance tax.
 
During the budget presentation yesterday, the finance minister announced that super tax would be abolished for businesses earning between Rs150m and Rs500m annually, and it would be reduced from 10pc to 8pc for businesses whose income exceeded Rs500m.

Aurangzeb said he proposed the abolishment of the super tax for “all exporters”, as per the directives of Prime Minister Shehbaz Sharif.

He further noted the matter also pertained to “financing rather than just taxation”. He added that an additional subsidy of Rs70 billion has been proposed in the budget to take the Export Refinance Scheme (EFS) “to a different level”.

Speaking about tariffs, the minister noted that the government was in the second year of the five-year plan “in terms of bringing the cost down in terms of intermediate goods and the raw material”.

He stressed the importance of reducing the “trade deficit for goods”, adding that the services exports, particularly IT, were “becoming more and more important as we go forward”.

He said IT exports were expected to reach $4.5bn and that the overall “goods and export data for next year is very good”.
 
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Agri sector​

Aurangzeb noted that agricultural credit and financing had risen by 15pc year-on-year (YoY) and the overall agri-financing has crossed Rs2 trillion. He highlighted that the Zarkhez-e Scheme for small farmers was collateral-free and was “moving in the right direction”.

The overall size of the Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS) was Rs262bn, out of which Rs125bn were allocated for agriculture, he noted.

The finance czar underscored the need for “value addition” in the equipment imported, such as combined harvesters, tractors and centrifugal pumps. “The customs duties and regulatory duties on all these things were reduced to zero,” he added.

Speaking about the construction sector, the minister said housing and construction “play a very important role” for a “pro-business and pro-growth direction” of the economy.
 

BUDGET 2026-27: ​

Defence gets Rs3tr amid security concerns​

Baqir Sajjad Syed
June 13, 2026

• Increase comes amid tensions with India, Afghan border concerns
• Allocation crosses 2pc of GDP after 17.6pc hike
• Military spending makes up nearly 16pc of federal outlay
• Rs967.55bn earmarked for salaries, allowances
• Military pensions budgeted separately at Rs822bn

ISLAMABAD: The federal government on Friday proposed allocating Rs3 trillion for defence services in fiscal year 2026-27, marking a 17.65 per cent increase over the outgoing year’s original allocation of Rs2.55tr, as it sought to sustain military preparedness amid continuing tensions with India, a deteriorating security situation along the Afghan border and persistent militant violence at home.

Finance Minister Muhammad Aurangzeb, while tabling the budget in the National Assembly, said Pakistan’s armed forces had delivered a decisive response to India’s aggression, forcing the adversary to retreat and demonstrating the country’s military preparedness and professional competence.
 
Budget documents show that the outgoing year’s original defence allocation of Rs2.55tr was later revised upward to Rs2.58tr, continuing the longstanding pattern of actual military expenditure exceeding initial budget estimates.

The latest increase, though lower than last year’s roughly 20pc rise, remains significantly above the average annual growth in defence spending recorded over the preceding five years.

The increase comes against the backdrop of Pakistan’s military confrontation with India last year, continuing counterterrorism operations and growing concerns over militant safe havens across the border with Afghanistan.

A functional breakdown of the proposed allocation shows employee-related expenses remain the largest component of defence spending.

An amount of Rs967.55bn has been earmarked for salaries and allowances of serving military personnel and civilian employees, representing a 14.36pc increase over last year’s allocation of Rs846.03bn. The category accounts for 32.25pc of the total defence budget.

Operating expenses, covering fuel, transportation, rations, training, medical treatment and other day-to-day requirements, are projected to increase by 5.54pc to Rs743.46bn from Rs704.4bn in the outgoing year and would consume nearly one-fourth of the overall allocation.

The sharpest increase has been proposed under the physical assets head, which finances procurement of arms, ammunition, military equipment and related acquisitions.
 
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