Pakistan Eyes Rs17 Trillion-Plus Federal Budget for 2026-27
Revenue target of over Rs15.2 trillion proposed as major allocations expected for debt servicing, development projects and defense spending.
Islamabad(Finale) The federal government is considering a budget exceeding Rs17 trillion for the upcoming fiscal year 2026-27, as final consultations continue ahead of the budget presentation in the National Assembly.
According to budget proposals under discussion, the Federal Board of Revenue (FBR) is expected to receive a tax collection target of approximately Rs15.267 trillion, reflecting the government’s focus on increasing revenue generation and strengthening fiscal stability.
Sources indicate that more than Rs4.7 trillion could be allocated for national development projects under the Public Sector Development Programme (PSDP), aimed at supporting infrastructure, energy, education, health, and other strategic sectors.
Defense spending is also expected to receive significant attention, with more than Rs2.6 trillion likely to be earmarked for national security and defense-related expenditures.
A major portion of the budget is expected to be consumed by debt servicing obligations, with proposals suggesting an allocation of around Rs7.8 trillion for interest payments on domestic and external loans.
Meanwhile, more than Rs1.1 trillion has been proposed for pension payments, while approximately Rs850 billion may be allocated in subsidies for various sectors to provide economic relief and support key industries.
Budget estimates suggest that debt servicing, defense expenditures, and development spending will account for the largest share of federal expenditures in the upcoming fiscal year.
Government officials are currently finalizing budget proposals, with the federal budget expected to be presented before the National Assembly on June 10, 2026
Key Budget Proposals
Total Budget Size: Over Rs17 trillion
FBR Revenue Target: Rs15.267 trillion
Development Spending (PSDP): More than Rs4.7 trillion
Defense Budget: Over Rs2.6 trillion
Debt Servicing: Around Rs7.8 trillion
Pension Payments: More than Rs1.1 trillion
Subsidies: Approximately Rs850 billion
