13/06/2026
Budget 2026 -27Pakistan's Federal Budget for the fiscal year 2026–27 (FY27) was officially unveiled by Federal Finance Minister Muhammad Aurangzeb on June 12, 2026, presenting a total layout of Rs18.771 trillion.The primary objectives of the budget are to drive a 4% GDP growth target while checking inflation at an 8.2% baseline estimate. This fiscal rollout emphasizes tax relief for the salaried class and major restructures to development allocations in line with regional constraints.Key Macroeconomic Targets & Financial OverviewIndicatorFY2026–27 TargetTotal Budget OutlayRs18.771 trillionGDP Growth Target4.0%Projected Inflation8.2%FBR Revenue TargetRs15.264 trillionFiscal Deficit3.6% of GDPPrimary Surplus Target2.0% of GDPMajor Spending Allocations (Rs in Billions)Debt Servicing / Interest Payments: Rs8,054 billionDefence Affairs & Services: Rs3,000 billionPublic Sector Development Programme (PSDP): Rs1,000 billionPensions: Rs1,169 billionSubsidies: Rs1,091 billionBenazir Income Support Programme : Rs838 billion (17% )Key Policy Interventions & Relief Measures1. Salaried Class Income Tax CutsThe government completed a major revision of tax slabs for four key income levels of salaried employees, alongside the complete abolition of the salaried-class surcharge:Rs2.2M to Rs3.2M annually: Tax reduced from 23% to 20%.Rs3.2M to Rs4.1M : Tax reduced from 30% to 25%.Rs4.1M to Rs5.6M annually: Tax reduced from 35% to 29%.Rs5.6M to Rs7.0M annually: Tax reduced from 35% to 32%.2. WageSalary Increase: A proposed 7% increase in federal government public sector employee salaries.Pension Increase: Retired employees 7% pension hike.Minimum Wage: Increased by 10% from Rs37,000 to Rs40,700.3. Industrial, IT, & Corporate ReformsExport Surcharge: The 0.25% export development surcharge has been completely abolished to promote trade growth.Super Tax: Reduced from 10% to 8% on incomes exceeding Rs500 million.IT Exports: The low 0.25% fixed tax rate on IT exports has been .Retailer Fixed Tax: Small retailers with sales under Rs200 million fall under a simplified 1% fixed tax system.International Banking: Tax on debit/credit transactions cut from 5% to 0.5%.4. Auto & Energy Sector ChangesImported Vehicles: Federal Excise Duty (FED) introduced on luxury vehicles (2,000cc to 3,000cc and above).Electric Vehicles (EVs): FED is now applicable on luxury EVs valued over Rs20 million.Green Energy: Concessions for electric motorcycles, buses, and rickshaws remain unchanged
