ISLAMABAD: The federal government is set to present the national budget for the fiscal year 2026–27 in parliament tomorrow, according to official sources.
The budget will be presented by Finance Minister Muhammad Aurangzeb after approval from the federal cabinet in a special meeting chaired by Prime Minister Shehbaz Sharif.
The total size of the budget is expected to exceed 17.5 trillion rupees, with the government focusing on salary and pension increases for public sector employees along with limited tax relief measures.
Officials indicate that the government is considering tax relief for salaried individuals, which may reduce the overall tax burden by around 50 billion rupees. At the same time, adjustments in income tax slabs are also under review.
No major changes are expected in taxes on solar panels and stationery items, although higher taxation is likely on imported electric vehicles. Hybrid vehicles are expected to remain under the current tax structure, while incentives may be introduced for locally manufactured electric vehicles. A carbon levy on petrol-powered vehicles is also being considered.
The budget is expected to set the petroleum levy collection target at around 1.727 trillion rupees. Defense spending is projected to be approximately 3 trillion rupees, while interest payments on national debt may reach 7.824 trillion rupees.
Economic projections suggest that the trade deficit could exceed 37 billion US dollars, with exports targeted at 32.8 billion dollars and imports estimated at around 70 billion dollars. The government is also aiming to create nearly 2 million new jobs across agriculture, industry, and services sectors.
Officials further stated that the National Economic Council has already approved key development priorities, including a 3.669 trillion-rupee national development plan and a 1 trillion-rupee federal Public Sector Development Programme.
The final details of the budget will be confirmed when it is formally presented in parliament tomorrow.
