Budget for FY2026-27 set to be presented in NA today

Pakistan's federal budget for the fiscal year 2026-27 is set for presentation today, introducing fresh tax measures projected to generate between 660 billion and 700 billion rupees. Finance Minister Muhammad Aurangzeb is scheduled to present the financial plan in the National Assembly and the Senate.

The budget includes significant relief for mid- to upper-level income earners, specifically targeting salaried individuals earning between 230,000 and 341,000 rupees per month. However, a substantial portion of earners making between 100,000 and 183,000 rupees monthly might not experience any changes in their tax obligations, according to official sources.

In a broader economic strategy, the government is implementing measures to integrate the informal economy into the tax net. This includes initiatives like the 'Fixed Tax Asaan Scheme' for small traders and shopkeepers. Additionally, the government is considering relaxing remittance caps to address concerns from overseas Pakistanis regarding their investments abroad.

Following negotiations, the ruling PML-N and its ally, the PPP, have agreed to reduce development and other expenditures across all government tiers. This move aims to address a revenue shortfall of approximately 800 billion rupees and create fiscal space for future strategic needs. The National Economic Council has set the federal and provincial development budget at 3.218 trillion rupees for FY26-27, with significant cuts made to development plans.