The federal government has set priorities for the upcoming budget 2026-27, focusing on green growth, climate resilience, and public relief. GDP growth is projected at 5.1 percent, while inflation is expected to remain around 6.5 percent. The new budget will introduce green taxes, climate-related subsidies, and non-tax revenue measures.
Finance Ministry officials said all ministries must now identify environmental and climate-related expenditures. Income and spending linked to climate change will require separate tagging. A strengthened disaster budgeting framework will ensure better preparedness for floods, storms, and other natural calamities.
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Non-tax revenue measures will target polluting activities, and green levies will support energy, transport, and pollution control. Subsidies will be categorized under climate adaptation and mitigation, clean energy, electric vehicles, agriculture, and climate infrastructure. Transparency and environmental goal achievement will be central to the budget.
The Ministry of Finance issued a budget call circular, laying out preparation timelines. Key milestones include revenue and expenditure submissions in February, Budget Review Committee meetings in March-April, and final budget documents by the end of May. Quarterly estimates will be submitted by June 30.
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Officials said the government is also preparing for the upcoming IMF economic review. Completion of the review could release the next $1 billion tranche for Pakistan. Measures will focus on relief for the public, salaried class, and industrial sector, with proposals to be finalized in the next two weeks.