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Public finance

Pakistan to Present Rs17,600 Billion Budget for 2025-26 Fiscal Year

Strategic Insights

— 2 min read

Pakistan's government will unveil a massive budget worth Rs17,600 billion for the fiscal year 2025-26 in the National Assembly today. The budget aims to increase government revenue and manage the growing fiscal deficit, which is expected to reach Rs6 trillion. Finance Minister Muhammad Aurangzeb will present the budget, which includes nearly Rs2 trillion in new taxes, while the government also plans to raise salaries and pensions of government employees and provide tax relief to some individuals. The budget allocates Rs8.5 trillion for interest payments on debt and Rs2.55 trillion for defense. Provinces will receive Rs8.3 trillion under the NFC Award, and the Public Sector Development Programme (PSDP) is expected to get Rs1 trillion.

Key Takeaways:

  • The budget for the fiscal year 2025-26 is worth Rs17,600 billion, up from the previous year's budget.
  • Finance Minister Muhammad Aurangzeb will present the budget, which includes nearly Rs2 trillion in new taxes.
  • The government aims to increase revenue and manage the fiscal deficit, which is expected to touch Rs6 trillion.
  • The FBR's tax collection target has been set at over Rs14 trillion.
  • The government plans to raise salaries and pensions of government employees and provide tax relief to some individuals.
  • The Public Sector Development Programme (PSDP) is expected to get Rs1 trillion.
  • Provinces will receive Rs8.3 trillion under the NFC Award.
  • The export target for the year is set at $35.3 billion, while imports are projected at $65.2 billion.
  • The federal revenue target stands at Rs19.3 trillion.
  • The expected economic growth rate is 4.2%, and the current account deficit is forecasted at -0.5% of GDP.
  • GDP grew 2.7% in the last fiscal year, marking a recovery from last year's negative growth.

Statistics:

  • Budget for fiscal year 2025-26: Rs17,600 billion
  • Fiscal deficit: Rs6 trillion
  • New taxes in budget: nearly Rs2 trillion
  • FBR tax collection target: over Rs14 trillion
  • Interest payments on debt: Rs8.5 trillion
  • Defense allocation: Rs2.55 trillion
  • NFC Award to provinces: Rs8.3 trillion
  • PSDP allocation: Rs1 trillion
  • Export target for 2025-26: $35.3 billion
  • Import target for 2025-26: $65.2 billion
  • Federal revenue target: Rs19.3 trillion
  • GDP growth rate: 4.2%
  • Current account deficit: -0.5% of GDP
  • GDP growth in 2024-25: 2.7%

Sources:

  • [The Express Tribune](https://tribune.com.pk/story/2150943/federal-budget-2025-26-pakistan-unveils-rs17600-trillion-budget-today)
  • [Dawn](https://www.dawn.com/news/1409285)
  • [The News](https://www.thenews.com.pk/print/994667-pakistan-unveils-rs176-trillion-budget)

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