The federal government unveiled a Rs18.771 trillion budget for FY2026-27, setting a 4 percent GDP growth target and projecting inflation at 8.2 percent during the fiscal year.
The budget outlines fiscal priorities through taxation measures, revenue collection targets, development spending plans, and policies aimed at supporting economic stability.
The government has set an FBR revenue target of Rs15.26 trillion while allocating significant funding for infrastructure, social protection, healthcare, education, and defence.
The government also announced tax reductions, welfare allocations, and economic reforms designed to balance growth objectives, fiscal discipline, and public spending requirement.
Key Budget Figures
- Outlay set at Rs18.77 trillion, a 7% rise from FY26
- Growth target fixed at 4%
- Inflation projection at 8.2%
Revenue & Spending
- FBR target: Rs15.26 trillion, up 8% from last year
- Non-tax revenue: Rs5.336 trillion
- PSDP allocation: Rs1 trillion
Wages & Pensions
- Minimum wage raised to Rs40,700 (10% increase)
- Interest payments: Rs8.054 trillion (+16%)
- Pensions: Rs1.169 trillion (+11%)
- Govt salaries & pensions: 7% hike
Defence & Development
- Defence spending: Rs3 trillion (+15.6%)
- Apna Ghar Programme: Rs71 billion
- BISP: Rs838 billion
- Health projects: Rs25.1 billion
- Education projects: Rs46 billion
- Governance: Rs13 billion
Fiscal Balance
- Deficit: 3.6% of GDP
- Primary surplus: 2% of GDP
Tax Adjustments
- Surcharge abolished for salaried class
- Super Tax cut: 2% for income above Rs500m (excl. Banks, Fertilizer, E&Ps)
- Property WHT: Purchases down to 1.25%, sales down to 2.75%
- Credit/Debit WHT: Reduced from 5% to 0.5%
- Export tax: Advance/minimum tax cut to 1.25%
- Retailer scheme: Fixed tax — Rs25,000 annually or 1% of sales
Excise Duties
- SUVs (2,000–3,000cc) now taxed under FED
- Petroleum solvents FED: Rs80/litre introduced
- E-cigarettes FED: Raised to Rs16,500/kg, retail cap removed
Income Tax Relief
- 20% (down from 23%) for Rs2.2m–3.2m
- 25% (down from 30%) for Rs3.2m–4.1m
- 29% (down from 35%) for Rs4.1m–5.6m
- 32% (down from 35%) for Rs5.6m–7.0m
- 0% surcharge abolished for income above Rs12m
