The Federal Board of Revenue (FBR) has been assigned an ambitious tax collection target of Rs. 15.264 trillion for the fiscal year 2026-27, making it one of the highest revenue goals in Pakistan’s history.
According to budget documents, the target forms a key part of Pakistan’s commitments under the IMF programme and is expected to be supported by a range of new taxation measures, enforcement actions, and revenue-enhancing reforms.
The government has projected total federal revenue receipts of Rs. 20.6 trillion during FY2026-27. After the transfer of Rs. 8.848 trillion to provinces under the National Finance Commission (NFC) Award, net revenue receipts are estimated at Rs. 11.751 trillion.
In addition to tax revenues, non-tax revenue is projected at Rs. 5.336 trillion, contributing significantly to the government’s overall revenue framework for the upcoming fiscal year.
To finance the budget and bridge the gap between revenues and expenditures, the government plans to mobilize additional resources through multiple channels. Non-bank borrowing is projected at Rs. 2.034 trillion, including collections through National Savings Schemes and other public account instruments. Net external receipts are estimated at Rs. 813 billion, while borrowing from the banking sector through treasury bills, Pakistan Investment Bonds (PIBs), and Sukuk is expected to reach Rs. 4.012 trillion. The budget also includes Rs. 161 billion in privatization proceeds.
These financing arrangements are expected to generate Rs. 7.02 trillion in additional resources, bringing the government’s total available resources for FY2026-27 to Rs. 18.771 trillion.
On the expenditure side, the federal government has allocated Rs. 17.495 trillion for current expenditures. Debt servicing remains the largest spending component, with interest payments estimated at Rs. 8.054 trillion. Defense affairs and services have been allocated Rs. 3 trillion.
The budget further earmarks Rs. 2.68 trillion for grants and transfers, Rs. 1.169 trillion for pensions, Rs. 1.091 trillion for subsidies, and Rs. 1.071 trillion for civil government operations. An additional Rs. 430 billion has been reserved for emergencies and contingencies.
Development and net lending expenditures have been budgeted at Rs. 1.276 trillion, including Rs. 1 trillion for the Federal Public Sector Development Programme (PSDP) and Rs. 276 billion for net lending.
Overall, total federal expenditures for FY2026-27 are projected at Rs. 18.771 trillion, matching the government’s estimated resources for the year and reflecting its fiscal management strategy under ongoing economic reforms.
