Federal Budget 2025-26 Announced

Finance Minister Muhammad Aurangzeb unveiled Pakistan’s federal budget for the fiscal year 2025-26 on Tuesday, framing it as a plan “for a competitive economy.” The budget targets a 4.2% growth rate for the upcoming fiscal period, a step up from the 2.7% growth anticipated in the current fiscal year 2025.

During a post-budget press briefing on Wednesday, Aurangzeb stated, “Given the fixed nature of many financial allocations, securing funds for relief measures requires strategic resource management. This process remains a dynamic undertaking.”

Budget in Brief offers our audience a concise overview of the federal budget for FY2025-26. This summary highlights the federal government’s primary goals, a synopsis of income and expenses, fiscal shortfall objectives, and the corresponding financial strategy.

Income tax calculator for FY 2025-26

Additionally, the document includes a detailed analysis of tax and non-tax revenues, the anticipated distribution to provinces under the NFC Award, capital and external revenues, and ongoing expenditures along with their respective classifications.

Details regarding allocations for subsidies, grants, and transfers, in addition to the PSDP, are also included.