Pakistan’s federal government has proposed a total budget of Rs. 17.1 trillion for the fiscal year 2026-27. The plan includes important economic targets such as 4.1% economic growth, 8.4% inflation, and tax revenue of Rs. 15.267 trillion.
The budget is expected to be presented on June 5. It shows that a large portion of spending will go toward debt repayment and defence. Around Rs. 7.824 trillion is set aside for debt servicing, while Rs. 2.665 trillion has been allocated for defence needs.
Officials say the budget has been prepared in consultation with the IMF. The main focus is on maintaining financial discipline, reducing pressure on the economy, and keeping overall stability, rather than offering major relief packages.
Another important part of the proposal is related to government employees’ salaries and pensions. Authorities are considering an increase of 7% to 10% in pay and pensions. However, government employees are demanding a much higher increase of up to 100%, saying that rising inflation has made daily life difficult.
Reports also suggest that employees are planning protests if their demands are not met. This has added pressure on the government as it tries to balance public expectations with financial limitations.
