Key Highlights of Pakistan’s Federal Budget 2025-26
The key proposals for Pakistan’s upcoming federal budget for the fiscal year 2025-26 have been revealed, showcasing significant financial allocations across various sectors. According to sources, the government plans to allocate **8207 billion PKR** for debt servicing, which includes payments for interest on loans, while **2550 billion PKR** is proposed for defense spending.
### **Budget Breakdown:**
* **Government Operational Expenses:** **971 billion PKR**
* **Pensions:** **1055 billion PKR**
* **Subsidies:** **1186 billion PKR**
* **Grants:** **1928 billion PKR**
* **Development Budget:** **1000 billion PKR**
### **Revenue Targets:**
* **FBR Tax Collection Target:** **14131 billion PKR**
* **Non-Tax Revenue Target:** **5167 billion PKR**
* **Federal Gross Revenue Target:** **19298 billion PKR**
### **Estimates for Provincial Transfers and Federal Revenue:**
* **Transfers to Provinces:** **8206 billion PKR**
* **Net Federal Revenue Estimate:** **11072 billion PKR**
### **Expenditure and Deficit:**
* **Current Expenditures for Fiscal Year 2025-26:** **16286 billion PKR**
* **Total Estimated Expenditures:** **17573 billion PKR**
* **Budget Deficit Estimate:** **5% of GDP**, amounting to **6501 billion PKR**
The budget is expected to provide a comprehensive financial framework for the government, prioritizing key areas such as defense, subsidies, and pension payments, while also aiming for robust tax revenue collection to meet the country’s fiscal requirements.
### **National Assembly Session:**
The **National Assembly’s Budget Session**, chaired by Speaker **Ayaz Sadiq**, is scheduled to take place today at **5:00 PM**. The **4-point agenda** for the session includes:
1. Recitation of the Holy Quran
2. Hadith and Naat (Praise of the Prophet)
3. National Anthem
4. Presentation of the Federal Budget by **Finance Minister Muhammad Aurangzeb**
During the session, the Finance Minister will present the **Financial Bill 2025** and other budget-related documents, followed by discussions on the proposed budget and its financial impact.
This budget aims to address Pakistan’s growing financial challenges while trying to maintain a balance between public spending, debt obligations, and developmental needs.
