With 'friendlier' measures in mind, markets brace for FY2026-27 budget announcement
- Budget will be streamed live on Business Recorder
Pakistan's Finance Minister will present the FY2026-27 budget today, outlining fiscal priorities and economic stabilization efforts, following the release of the FY2025-26 Economic Survey.
- Government's fiscal priorities and expenditure plans.
- Key findings from the Pakistan Economic Survey.
- GDP growth figures and economic stabilization efforts.
All eyes are set on the federal government as it unveils the budget for the next financial year 2026-27 that will be tabled at the National Assembly today.
Finance Minister Muhammad Aurangzeb will present the budget.
Pakistan’s financial markets have also anticipated a friendlier, growth-oriented budget, talks suggest, with the KSE-100 also advancing in the morning session. Additionally, with the economy now having stabilised according to government officials, many also believe Islamabad will look towards faster GDP growth in the coming fiscal year.
The government had earlier indicated that the announcement would be made on June 10 after revising the schedule from its initial plan.
The upcoming budget is expected to outline the government’s fiscal priorities, revenue measures and expenditure plans for FY27 amid ongoing efforts to stabilise the economy and sustain growth.
On Thursday, the government unveiled the Pakistan Economic Survey (PES) for FY2025-26, according to which GDP growth was recorded at 3.7% in the outgoing fiscal year.
The growth was higher than the previous year’s figure of 3.18% but well short of its target of 4.2% announced in the last year’s budget.
“The improvement owes to effective macroeconomic management, better fiscal account, growth in large scale manufacturing (LSM) sector, resilience of the agriculture sector to floods of 2025, exchange rate stability and reforms under the IMF Extended Fund Facility (EFF) Programme,” the survey stated.
NEC targets
The National Economic Council (NEC) on Wednesday had approved a Rs3.669 trillion national development outlay for the fiscal year 2026-27, including Rs838 billion in foreign aid and set a GDP growth target of 4%.
The meeting also sanctioned Rs1 trillion for the federal Public Sector Development Programme (PSDP), Rs2.218 trillion for provincial development programmes, and Rs451 billion for state-owned enterprises (SOEs).
The NEC unanimously approved a four-point agenda and revised economic indicators for the outgoing fiscal year 2025-26, allocating Rs820 billion for the federal PSDP, Rs2,938 billion for provincial development programmes, and Rs355 billion for SOEs.
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