Islamabad, Pakistan – Web Desk: Pakistan’s Finance Minister Muhammad Aurangzeb presented the federal budget worth over PKR 18.77 trillion for the fiscal year 2026–27 in the National Assembly, outlining wide-ranging tax relief, salary increases, and development spending.
Prime Minister Shehbaz Sharif hailed the budget as a relief-oriented and pro-growth plan aimed at passing the benefits of economic stability directly to citizens.
The budget proposes a 7% increase in salaries and pensions for government employees and a 10% rise in the minimum wage. Major tax relief has been introduced for salaried individuals across four income slabs, with reduced income tax rates and the removal of a 9% surcharge on salaried classes. Super tax reductions are also proposed for higher-income brackets.
Key macroeconomic indicators include projected GDP growth of 4%, inflation at 8.2%, and a fiscal deficit of 3.6% of GDP. Federal revenues are estimated at PKR 15.26 trillion, while total expenditures are projected at PKR 18.77 trillion, including significant allocations for debt servicing, defence, subsidies, and development programs.
The budget also includes major infrastructure investments, including highways, energy projects, water security initiatives, housing schemes, and digital urban planning. Social welfare programs such as the Benazir Income Support Programme (BISP) receive an increased allocation of PKR 838 billion.
Officials said the budget prioritises defence, economic stability, exports, and investment-led growth while also expanding relief for salaried and middle-income groups.
