Pakistan’s federal government is set to unveil the Rs 17.1 trillion budget for the fiscal year 2026-27 on June 5, with special sessions of both the National Assembly and Senate scheduled for the occasion. Before the budget is presented in Parliament, the federal cabinet will hold a special meeting to approve the final proposals.
A day earlier, on June 4, the government will release the Economic Survey of Pakistan 2025-26, which will provide a detailed review of the country’s economic performance during the outgoing fiscal year.
According to preliminary estimates, the government has set an economic growth target of 4.1 percent for the next fiscal year, while average inflation is expected to remain around 8.4 percent. The proposed budget framework includes a tax revenue target of Rs 15.267 trillion and non-tax revenue of Rs 2.768 trillion.
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Development spending will remain a priority, with Rs 1.1 trillion proposed for the federal Public Sector Development Programme (PSDP), aimed at funding infrastructure and public welfare projects across the country.
Debt servicing is expected to be the largest expenditure item in the budget, with Rs 7.824 trillion allocated for interest payments. Defense spending is also projected to increase, reaching Rs 2.665 trillion. In addition, the government aims to collect Rs 1.727 trillion through the petroleum levy during the next fiscal year.
Meanwhile, salary and pension adjustments have become a major issue ahead of the budget. Government employees are demanding significant increases, with some representatives calling for up to a 100 percent rise in salaries and pensions. Officials have indicated that any relief package is likely to be linked to the inflation rate rather than meeting the full demands.
Employee organizations have announced protests outside the Ministry of Finance and Parliament, warning of a broader campaign if their demands are not addressed. The upcoming budget is therefore expected to be closely watched by businesses, investors, government employees, and the general public alike.
