Govt unveils Rs18.8tr budget for FY2026-27; economic growth targeted at 4pc
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Finance Minister Muhammad Aurangzeb presented the FY2026-27 budget in the National Assembly (NA), addressing a session that began two hours after the scheduled time of 3pm and is marred by loud protests by the opposition. NA Speaker Ayaz Sadiq presided over the session, who invited Aurangzeb to present the budget. The budget has an outlay of Rs18.8 trillion, of which Rs8,045bn would be set aside for markup payment, Aurangzeb said in his budget speech. The finance minister said the economy was expected to grow four per cent in FY2026-27 and average inflation was expected to be recorded at 8.2pc. He added that the fiscal deficit would be 3.6pc of GDP while the primary surplus would 2pc. Tax revenue has been estimated at Rs15,264 for FY-2026-27, which is 17.6pc more than the outgoing year’s Rs12,983. He further said that provinces would contribute RS8,848bn to the federal revenue. Aurangzeb began by thanking allies part of the ruling coalition, including PPP Chairperson Bilawal-Bhutto Zardari. He said the budget was being presented at a time when the world listened to Pakistan and desired its friendship. “But this was not coincidental. It began when Pakistan gave a befitting response to India in May 2025.” “This success was a result of decades-long professional training and preparedness,” he added. “Today, the world praises Pakistan’s defence capabilities. This is the reason that many countries are in contact with Pakistan to include the fighter jets protecting our skies in their fleet.” The finance minister said the country’s defence sector had become a source of foreign exchange earnings. “It is proof that strong defence is not just important for the country’s sovereignty but could also contribute to economic progress.” “This defence capability has reshaped our strategic partnerships not just in the region but in the world,” he said, mentioning a defence pact signed between Pakistan and Saudi Arabia last year. He said last year’s defence pact had laid a new foundatio