Federal Government Sets Priorities for FY 2026–27 Budget, Focus on Growth, Climate Resilience

**Islamabad (Qudrat Daily):**
The federal government has finalized its priorities for the budget of the fiscal year 2026–27, placing strong emphasis on GDP growth, climate resilience, and relief for the salaried class. The government has set a GDP growth target of 5.1 percent for the next fiscal year.

According to the Ministry of Finance, inflation is expected to remain around 6.5 percent in the upcoming budget. The budget formulation will prioritize environmental taxes, non-tax revenue, and climate-related subsidies, reflecting the government’s strategy for sustainable development.

All ministries have been directed to identify environmental and climate-related expenditures. Key components of income and spending will now be separately tagged for climate change, while a strengthened disaster budgeting framework will ensure better preparedness for natural calamities.

The climate impact of non-tax revenue will be assessed, and levies on polluting activities will be aligned with climate targets. Green revenue measures will focus on energy, transport, and pollution-related challenges. Subsidies will be allocated for climate adaptation and mitigation, agricultural insurance, climate-resilient infrastructure, clean energy, and electric vehicles, with transparency and environmental targets remaining key priorities.

The government is preparing for the third economic review with the International Monetary Fund (IMF) next month, which, upon completion, is expected to pave the way for the release of the next tranche of USD 1 billion for Pakistan.

Special focus is being placed on relief measures for the general public, the salaried class, and the industrial sector. The Prime Minister has directed officials to define new priorities for IMF negotiations and present concrete proposals and actionable recommendations within two weeks to ensure public relief.

The Ministry of Finance has issued the Budget Call Circular and approved the budget-making schedule. According to the ministry, the Budget Call Circular for FY 2026–27 has been released, while the interim macroeconomic framework will be prepared during the current month. The mid-year review report will be presented in the National Assembly in February 2026.

Ministries have been instructed to submit key budget forms, revised revenue and expenditure estimates, and details of development projects by February 20. Budget Review Committee meetings will be held from March 30 to April 12, 2026. Information regarding the exchange rate will be shared on April 15, the Budget Strategy Paper will be approved by April 20, and budget ceilings for current and development expenditures will be issued between April 21 and April 25.

The Annual Plan Coordination Committee meeting will be held in the first week of May, followed by the National Economic Council meeting in the second week of May. All budget documents will be finalized by the end of May, while quarterly budget estimates will be submitted by June 30.