Pakistan Budget 2026-27: Rs17.5 Trillion Outlay Announced

Islamabad – (Web Desk) – Finance Minister Senator Muhammad Aurangzeb presented the Pakistan budget 2026-27 in the National Assembly on Friday. The total outlay is set at around Rs17.5 trillion, covering taxes, defence, and debt payments.

The government has set a tax revenue target of Rs15.267 trillion. A total of Rs7.824 trillion has been kept for debt servicing. The defence budget is expected to reach Rs3 trillion this year.

Government employees may get good news as the budget includes a likely increase in salaries and pensions. The government also plans to collect Rs1.727 trillion through the petroleum levy in the coming fiscal year.

For trade, the export target has been set at $32.8 billion and the import target at $70 billion. No new development projects will be launched. The focus will remain on finishing ongoing schemes first.

The government may also remove the tax exemption that people in former FATA areas currently enjoy. This is one of the key structural changes being considered in this budget.

A day before the budget, the Pakistan Economic Survey 2025-26 was released. It showed that Pakistan’s GDP grew by 3.7 percent, the highest in four years, but still missed the 4.2 percent target due to floods, energy crisis, and Middle East tensions.

Pakistan’s economy in dollar terms reached $452 billion. Per capita income rose to $1,901 compared to $1,751 last year. Inflation returned to double digits after the US-Iran conflict affected energy prices badly.

The poverty rate stands at 28.9 percent and the unemployment rate is 7.1 percent. Foreign exchange reserves reached $20.6 billion as of April 2026, showing stronger financial stability.

The opposition decided not to boycott the budget session. They will protest both inside and outside parliament while continuing to demand the release of PTI founder Imran Khan.