All eyes on budget 2026–27 presentation today

The federal budget for fiscal year 2026–27 is set to be presented in both houses of Parliament today, marking one of the most significant policy announcements of the year.

The federal budget for fiscal year 2026–27 is set to be presented in both houses of Parliament today, marking one of the most significant policy announcements of the year.

Finance Minister Muhammad Aurangzeb was scheduled to present the budget in the National Assembly at 3pm, although the session had not started at the time of initial reports. The federal cabinet has already approved the financial plan during a meeting held at Parliament House.

Prime Minister Shehbaz Sharif said in a message that the budget has been prepared with “hard work and sincerity.” He added that the government has prioritised public welfare and national prosperity in the new fiscal plan.

Ahead of the budget session, the Prime Minister also met a delegation of the Muttahida Qaumi Movement–Pakistan (MQM-P), describing it as an important coalition partner and appreciating its role in supporting economic stability and governance.

Meanwhile, the Pakistan Peoples Party (PPP) announced that its chairman Bilawal Bhutto-Zardari would not attend the budget session, although the party clarified it was not boycotting the proceedings. Some PPP members are expected to participate in the session.

Before the budget presentation, PPP lawmakers staged a brief protest in the National Assembly, demanding the release of Sindh’s due water share. They raised slogans and displayed placards highlighting water shortages in the province.

According to reports, the government is preparing fresh tax measures worth approximately Rs660–700 billion. At the same time, relief is expected for salaried individuals, particularly those in mid to upper-income brackets.

Sources suggest that employees earning between Rs230,000 and Rs341,000 monthly may receive significant tax relief, while those in lower-income ranges may see limited changes.

The budget is also expected to introduce incentives for agriculture and housing sectors, including reduced interest rates for long-term financing. A new taxation model for retailers and a digital “faceless” tax system are also likely to be announced.

Officials have indicated that efforts will continue to expand the tax base, especially by bringing the informal economy into the system. A new fixed tax scheme for small traders and shopkeepers has already been introduced ahead of the budget.

The budget comes against the backdrop of moderate economic recovery. Pakistan’s economy grew by 3.7 percent in FY2025–26, slightly below the earlier target of 4.2 percent but higher than previous years.

Growth was recorded across key sectors, including agriculture, industry, and services. However, several targets were missed, reflecting ongoing structural challenges.

The size of the national economy increased to a record level, while per capita income rose to $1,901. Inflation eased and external accounts showed improvement, though exports declined by around 5 percent due to lower commodity shipments.

Despite improvements in some indicators, analysts say the government faces the challenge of balancing growth, revenue generation, and public relief in the upcoming fiscal year.

The National Economic Council has set the development budget for FY2026–27 at over Rs3.2 trillion after revisions, with significant adjustments in provincial allocations and federal development spending.