What to expect from Budget 2026-27?

ISLAMABAD: The federal government is all set to unveil, what it describes as a growth and relief-oriented, federal budget for the fiscal year 2026-27 today (Friday).

The budget had been formulated while considering the existing challenges being faced by the economy at the domestic and international fronts. Hence, mitigating the people’s sufferings, transforming the agriculture sector, promoting information technology (IT), and boosting exports would be the main focus of the document, APP reported, citing sources.

But will the next federal budget bring relief to consumers, or will it further strain household finances? Will taxes be reduced for businesses and salaried individuals, or not?

Answers to these questions will emerge when Finance Minister Muhammad Aurangzeb presents the federal budget for fiscal year 2026-27 in the National Assembly.

Sources told Geo News that the following proposals are likely to feature in the budget:

• Tax revenue target proposed at Rs15.267 trillion for fiscal year 2026-27.
• Around Rs7.824 trillion likely to be allocated for debt servicing and interest payments.
• Defence spending projected to reach Rs3 trillion.
• Increase in salaries and pensions of government employees under consideration.
• Government plans to collect Rs1.727 trillion through the petroleum levy.
• Export target likely to be set at $32.8 billion.
• Import target expected to be fixed at $70 billion.
• Sales tax on imported electric vehicles may be increased to 25%.
• Proposal under consideration to reduce the super tax by 1–2 percentage points.
• Suggested tax rate of 29% on monthly income of Rs467,000.
• Capital gains tax may be imposed on profits from cryptocurrency transactions.
• Tax exemption for the former Federally Administered Tribal Areas (FATA) could be withdrawn.
• No new development projects are expected apart from those related to defence and the Ministry of Interior.
• Government likely to prioritise funding for ongoing development schemes rather than launching new ones.

The National Assembly session for the budget presentation is scheduled to begin at 3pm, when the finance minister will formally unveil the government's fiscal blueprint for the coming year.