Pakistan has announced the Federal Budget 2025-26 with a total outlay of Rs17,573 billion, reflecting the government’s fiscal priorities amid ongoing economic challenges. According to official budget documents, Rs2,550 billion has been allocated for defense, representing a 19% increase from last year’s allocation of over Rs2.1 trillion. This rise underscores the government’s emphasis on strengthening national security amid regional tensions.
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A substantial Rs8,207 billion has been earmarked for interest payments on loans, highlighting the country’s significant debt servicing obligations. Simultaneously, Rs8,206 billion will be transferred to the provinces under the National Finance Commission (NFC) Award to enhance regional development and governance capabilities.
The government aims to generate Rs19,278 billion in total revenue during the fiscal year. Of this, Rs14,131 billion is expected from tax revenues through the Federal Board of Revenue (FBR), while non-tax revenues are projected at Rs5,147 billion. These revenue targets reflect the administration’s efforts to enhance fiscal discipline, increase resource mobilization, and ensure sustainable economic growth.
