Pakistan Unveils Fiscal Budget for 2025-26

The Pakistani government introduced its budget for the fiscal year 2025-26 on Tuesday, aiming for a 4.2% growth rate. This is a step up from the anticipated 2.7% for the current fiscal year 2024-25.

Key Highlights of the Budget:
  • Growth Target: GDP growth is projected at 4.2% for FY26.
  • Total Outlay: The total planned expenditure is Rs17.6 trillion, a decrease of 7%, which is Rs1.3 trillion less than the previous year’s budgeted Rs18.9 trillion.
  • Inflation Forecast: The expected inflation rate for the upcoming fiscal year is 7.5%.
  • Budget and Surplus: A budget deficit of 3.9% is anticipated, along with a primary surplus of 2.4% of GDP.
  • FBR Revenue: Revenue from the Federal Board of Revenue is estimated at Rs14.13 trillion, marking an 18.7% increase from the current fiscal year.
  • Non-Tax Revenue: Federal non-tax revenue is projected to be Rs5.15 trillion.
  • PSDP Allocation: The Public Sector Development Programme receives an allocation of Rs1 trillion.
  • Defense Budget: Defence spending is set at Rs2.55 trillion.
  • Pension Allocation: Pensions are allocated Rs1.05 trillion.
  • Subsidies: Energy and other sectors will receive Rs1.19 trillion in subsidies.
  • BISP Funding: The Benazir Income Support Programme is allocated Rs716 billion, an increase of 21%.