Pakistan to present FY2026-27 federal budget today

WEB DESK: Finance Minister Muhammad Aurangzeb is set to present the federal budget for the fiscal year 2026–27 in the National Assembly today (Friday), outlining the coalition government’s fiscal priorities, revenue-generating measures, and expenditure plans amid ongoing efforts to stabilise the stuttering economy and sustain long-term growth.

The crucial announcement comes after the government revised its legislative schedule multiple times. It had earlier indicated June 10 as the tentative date for the budget presentation, following adjustments from its initial roadmap.

The final proposals follow extensive consultations with coalition partners and provincial governments on critical fiscal matters, resource distribution, and taxation targets.

Modest economic recovery recorded

The budget presentation follows the formal release of the Pakistan Economic Survey for FY2025–26 on Thursday, which recorded a modest Gross Domestic Product (GDP) growth of 3.7pc in the outgoing fiscal year.

While the latest figure represents a marginal improvement over the previous fiscal year’s growth of 3.18pc, it notably fell short of the ambitious 4.2pc target set in last year’s budget.

According to the survey documentation, the economic turnaround owes primarily to effective macroeconomic management, improved fiscal accounts, and a recovery in the large-scale manufacturing (LSM) sector.

The report also highlighted the resilience of the agricultural sector in the wake of the devastating 2025 floods, relative exchange rate stability, and stringent structural reforms implemented under the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) programme.

National Economic Council approves development outlay

Ahead of the formal budget session, the National Economic Council (NEC) on Wednesday greenlit a massive Rs3.669 trillion national development outlay for FY2026–27.

This comprehensive development portfolio includes Rs838b in external foreign aid, alongside an official GDP growth target pegged at 4pc for the upcoming fiscal year.

A breakdown of the approved figures reveals that the council sanctioned Rs1tri for the federal Public Sector Development Programme (PSDP), Rs2.218tri for various provincial development initiatives, and Rs451b allocated for state-owned enterprises (SOEs).

For the outgoing fiscal year 2025–26, the NEC revised its development allocations to Rs820b for the federal PSDP, Rs2,938b for provincial development programmes, and Rs355b for SOEs.

The finance minister’s budget speech this afternoon is expected to provide granular details regarding new taxation proposals, potential relief measures for salaried classes, and the strategic implementation of these development targets.