Pakistan's FY2026-27 Federal Budget to Be Presented Today
Pakistan's federal budget for fiscal year 2026-27 is slated for presentation today in both the National Assembly and the Senate. Finance Minister Muhammad Aurangzeb is scheduled to unveil the financial plan, which is expected to include new tax measures ranging from Rs660 billion to Rs700 billion. The budget also anticipates targeted tax relief for certain salaried individuals, while development expenditures have undergone significant adjustments following an agreement between the ruling coalition partners.
The federal budget for the upcoming fiscal year (FY26-27) is scheduled for presentation today in Pakistan's upper and lower houses of Parliament. Finance Minister Muhammad Aurangzeb is expected to present the financial plan in the National Assembly at 3 PM, followed by a presentation in the Senate, according to Parliamentary Affairs Minister Tariq Fazal Chaudhry.
The coalition government intends to introduce fresh tax measures valued between Rs660 billion and Rs700 billion within the budget. Significant tax relief is planned for salaried individuals earning between Rs230,000 and Rs341,000 per month, with those making Rs230,000 to Rs300,000 a month expected to see a steep reduction in their tax burden. However, a large segment of individuals earning between Rs100,000 and Rs183,000 per month may not experience any changes to their tax situation.
Prime Minister Shehbaz Sharif has indicated the government's efforts to integrate the informal economy into the tax net. Last week, the 'Fixed Tax Asaan Scheme' was introduced to bring small traders and shopkeepers with an annual turnover of up to Rs200 million into the tax system. The government is also reportedly considering relaxing the remittance cap in the upcoming budget.
Following earlier difficulties in reaching a consensus, the ruling PML-N and its key ally, the PPP, reached a broad agreement on Monday. This agreement focuses on cutting development and other expenditures across all tiers of the federation to address an estimated Rs800 billion revenue shortfall this year and create fiscal space for future strategic needs. Under this agreement, provincial shares from the federal divisible pool will remain frozen at the current fiscal year's position.
The National Economic Council (NEC) has set the federal and provincial development budget at Rs3.218 trillion for FY26-27. This figure represents a trimming of Rs1.046 trillion from the uplift plans initially cleared by the Annual Plan Coordination Committee (APCC). Punjab's development plan saw the largest cut, almost half or 49 percent, while Balochistan's Rs308 billion plan remained unaffected.
(Source: Dawn Pakistan)
