ISLAMABAD: The federal government is set to present the Budget for Fiscal Year 2026-27 in the National Assembly today (Friday), outlining its fiscal priorities, revenue measures, and expenditure plans aimed at sustaining economic stability and growth.
Finance Minister Muhammad Aurangzeb will present the federal budget, which is expected to focus on economic reforms, revenue generation, development spending, and measures aligned with the government’s broader macroeconomic stabilization agenda.
The budget was initially scheduled to be presented on June 10 but was later rescheduled by the government.
Economic Survey Highlights Growth
Ahead of the budget announcement, the government released the Pakistan Economic Survey (PES) 2025-26 on Thursday, reporting that the country’s economy grew by 3.7% during the outgoing fiscal year.
While the growth rate exceeded last year’s expansion of 3.18%, it fell short of the official target of 4.2% set in the previous budget.
According to the survey, the improvement in economic performance was driven by prudent macroeconomic management, a stronger fiscal position, growth in the large-scale manufacturing sector, resilience of agriculture following the 2025 floods, exchange rate stability, and reforms implemented under the International Monetary Fund Extended Fund Facility (EFF) Programme.
NEC Approves Development Outlay
Earlier this week, the National Economic Council (NEC) approved a national development outlay of Rs3.669 trillion for FY2026-27, including Rs838 billion in foreign assistance, while setting a GDP growth target of 4% for the upcoming fiscal year.
The approved development framework includes:
- Rs1 trillion for the Federal Public Sector Development Programme (PSDP)
- Rs2.218 trillion for provincial development programmes
- Rs451 billion for State-Owned Enterprises (SOEs)
The NEC also unanimously approved revised economic indicators for FY2025-26, allocating Rs820 billion for the federal PSDP, Rs2.938 trillion for provincial development initiatives, and Rs355 billion for SOEs during the outgoing fiscal year.
Focus on Growth and Fiscal Discipline
The FY2026-27 budget is expected to balance development spending with fiscal discipline as Pakistan continues to implement economic reforms under its IMF-supported programme. Key areas likely to receive attention include infrastructure development, social protection, energy sector reforms, revenue enhancement, and measures to stimulate investment and economic growth.
The budget presentation will provide a clearer picture of the government’s strategy to maintain economic stability while addressing challenges related to inflation, fiscal deficits, and sustainable growth.
