The federal government is set to present the budget for the fiscal year 2026-27 in both houses of Parliament today, with Finance Minister Muhammad Aurangzeb scheduled to unveil the financial plan in the National Assembly at 3pm, followed by a presentation in the Senate.
According to parliamentary officials, the budget comes at a critical economic juncture as the government prepares to introduce new tax measures and fiscal adjustments aimed at meeting revenue targets while balancing public relief and development needs.
Sources indicate that the upcoming budget includes fresh tax measures worth between Rs660 billion and Rs700 billion. At the same time, targeted relief is expected for salaried individuals, particularly those earning between Rs230,000 and Rs341,000 per month. However, a significant portion of middle-income earners in the Rs100,000 to Rs183,000 range may not receive any immediate tax relief.
Prime Minister Shehbaz Sharif has stated that the government is focused on broadening the tax base by bringing the informal economy into the tax net. In line with this approach, a “Fixed Tax Asaan Scheme” has already been introduced to include small traders and shopkeepers with annual turnovers of up to Rs200 million.
The government is also reportedly considering easing restrictions on remittances, following concerns raised by overseas Pakistanis regarding investment and financial transfer challenges abroad.
Budget preparations have also involved negotiations between the federal government, coalition partners, and provinces over fiscal space and development allocations. Recently, the ruling PML-N and the PPP reached an agreement to adjust development and other expenditures to address a revenue shortfall of around Rs800 billion.
Under the agreed framework, provincial shares from the federal divisible pool will remain frozen at current levels. The National Economic Council has set the combined federal and provincial development budget at Rs3.218 trillion for FY26-27 after trimming earlier proposals by more than Rs1 trillion.
Officials said the revised development plan reflects prioritization of strategic spending needs while maintaining fiscal discipline across the federation.