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  "path": "/pakistan-unveil-pkr18trillion-budget-2677031066",
  "publishedAt": "2026-06-12T04:10:52.000Z",
  "site": "https://nukta.com",
  "textContent": "\n\n\n\nPakistan’s government is set to unveil the federal budget for fiscal year 2026-27 on Friday, proposing an outlay of about PKR 18.2 trillion and an ambitious tax collection target of approximately PKR 15.264 trillion as it seeks to meet International Monetary Fund (IMF) fiscal conditions while balancing defense, development and social spending priorities.\n\nFinance Minister Muhammad Aurangzeb is scheduled to present the budget in the National Assembly after days of consultations with the IMF and coalition partners.\n\nThe spending plan aims to maintain fiscal discipline, increase revenue collection and sustain economic stability following a year marked by moderate growth and improvements in the external sector.\n\nAccording to budget proposals, the Federal Board of Revenue (FBR) tax collection target is expected to be set at approximately PKR 15.264 trillion, requiring a significant increase from the current fiscal year. The government plans to rely on enhanced enforcement measures, a broader tax base and additional taxation measures to achieve the target.\n\nKey economic assumptions for the next fiscal year include GDP growth of around 4.1% and inflation in the range of 8% to 8.5%. The budget is also expected to prioritize fiscal consolidation under Pakistan’s IMF-supported reform program.\n\nAmong the major expenditure items, debt servicing is projected to remain the largest component of federal spending at PKR 7.824 trillion, highlighting the continued burden of public debt on the country’s finances. Defense spending is expected to rise to PKR 3 trillion amid regional security challenges and evolving strategic priorities.\n\nThe government plans to collect PKR 1.727 trillion through the petroleum levy, making it one of the largest sources of non-tax revenue in the upcoming fiscal year.\n\nThe Public Sector Development Programme (PSDP) is expected to receive around PKR 1 trillion. However, the government is not expected to launch any major new development projects and will instead focus on completing ongoing schemes to avoid cost overruns and improve project execution.\n\nBudget documents indicate Pakistan will target exports of USD 32.8 billion and imports of USD 70 billion during FY2026-27 as policymakers seek to maintain external sector stability and support economic growth.\n\nThe government is also considering relief measures for salaried individuals, although revenue losses from any tax concessions are expected to be offset through new taxation and enforcement initiatives. Officials have already announced plans to bring more retailers into the tax net, including a proposed 1% income tax on small retail businesses with annual turnover of up to PKR 200 million.\n\nAuthorities are also considering withdrawing tax exemptions available to the former Federally Administered Tribal Areas (FATA) as part of efforts to broaden the tax base and increase revenues.\n\nThe budget comes as Pakistan’s economy shows signs of stabilization, with the Economic Survey 2025-26 reporting GDP growth of 3.7% and the country’s economic size surpassing USD 450 billion for the first time.\n\nHowever, policymakers remain concerned about inflationary pressures, rising global oil prices and the need to sustain IMF-backed reforms.\n\n**Key budget proposals for FY2026-27:**\n\n* Total budget outlay of around PKR 18.2 trillion.\n• FBR tax collection target of approximately PKR 15.264 trillion.\n• Debt servicing allocation of PKR 7.824 trillion.\n• Defense spending of PKR 3 trillion.\n• Petroleum levy collection target of PKR 1.727 trillion.\n• GDP growth target of about 4.1%.\n• Inflation forecast of 8% to 8.5%.\n• Export target of USD 32.8 billion.\n• Import target of USD 70 billion.\n• PSDP allocation of approximately PKR 1 trillion.\n• Potential relief for the salaried class.\n• Withdrawal of some FATA tax exemptions under consideration.\n• Expanded taxation and enforcement measures to meet IMF commitments.",
  "title": "Pakistan to unveil PKR 18.2 trillion budget with tax target of PKR 15.3 trillion"
}