Key Takeaways

  • →The federal budget allocates Rs. 18.9 trillion, marking a significant fiscal commitment.
  • →Development spending (PSDP) has increased to Rs. 1.4 trillion, supporting infrastructure and social projects.
  • →Debt servicing remains the largest expense at Rs. 8.1 trillion, underscoring ongoing debt challenges.

Budget Overview

The approved budget reflects Pakistan's fiscal priorities with an Rs. 18.9 trillion outlay, emphasizing debt management, defense, and development.

Fiscal Targets and Priorities

Revenue targets remain ambitious at Rs. 9.8 trillion, while development spending has been increased to Rs. 1.4 trillion to support infrastructure growth and social sector projects.

Fiscal Challenges and Outlook

Debt servicing at Rs. 8.1 trillion remains the dominant expenditure, highlighting ongoing fiscal sustainability issues. The budget underscores the need for continued revenue enhancement and expenditure reforms.

Pakistan Federal Budget Outlay FY2026-27
Total Budget and PSDP Allocation
The budget's development allocation accounts for a significant portion of the total outlay, indicating a focus on infrastructure.
Source: PublicFinance.pk

Filed Under

federal budgetNFCeconomic policyPakistan budget 2026-27