Pakistan & Gulf Economist

Budget 2026-27 (Facts & Figure)

Key Highlights Of Pakistan Budget For FY2026-27
Total outlay at Rs18.77 trillion, up 7 percent as compared to Rs17.57 trillion budgeted outlay of FY26 Growth target at 4 percent
Inflation expected at 8.2 percent FBR revenue target at Rs15.26 trillion, an increase of over 8 percent compared to Rs14.13 trillion proposed in outgoing fiscal year
Rs5.336 trillion from non-tax revenue Rs1 trillion for Public Sector Development Programme (PSDP)
Minimum wage at Rs40,700, 10 percent increase from Rs37,000 in FY26 Rs8.054 trillion for interest payments, up 16 percent from Rs6.937 trillion in FY26 (revised)
Rs1.169 trillion for pension payments, up 11 percent from Rs1.055 trillion in FY26 7 percent increase in government employees and pensions
Rs3 trillion for defence affairs and services, up 15.6 percent from Rs2.6 trillion (revised) in FY26 Export development surcharge of 0.25 percent on export income abolished
Fiscal budget deficit at 3.6 percent of GDP Primary surplus of 2 percent of GDP
Rs71 billion for Prime Minister Apna Ghar Programme Rs838 billion for Benazir Income Support Programme (BISP)
Rs25.1 billion for health projects under federal development programme for FY2026-27 Rs46 billion for education under federal development programme for FY2026-27
Rs13 billion for governance Surcharge on salaried class abolished
2 percent reduction in Super Tax for income exceeding Rs500 million, except for Banks, Fertilizer and E&Ps WHT on property purchases reduced from 2.5 percent to 1.25 percent and on sales from 5.5 percent to 2.75 percent
WHT on Int. transaction by credit & debit reduced from 5 percent to 0.5 percent Advance income tax and minimum tax on exports reduced from 2.0 percent to 1.25 percent
Fixed tax Asaan scheme for retailers with earning up to Rs200 million. Retailers to pay minimum Rs25,000 per annual or 1 percent of sales SUVs (2,000–3,000cc) be subject to FED.
FED of Rs80/litre introduced on petroleum-based solvents, naphtha, and turpentine oil, which were previously exempt from excise duty FED on e-liquids for e-cigarettes raised from Rs10,000 to Rs16,500 per kg, with removal of 65 percent retail price cap
Minimum tax rate for distributors and wholesalers increased from 0.25 percent to 0.5 percent

Growth Of World Output And Gross Domestic Product
Annual percentage change 2010-2019 average 2024 2025a 2026b 2027b Change from World Economic Situation and Prospects 2026
2026 2027
World 3.2 2.9 3.0 2.5 2.8 -0.2 -0.1
Developed economies 2.0 1.8 1.7 1.5 1.7 -0.1 -0.1
United States of America 2.4 2.8 2.1 2.0 2.0 0.0 -0.2
Japan 1.3 -0.2 1.2 0.8 1.1 -0.1 0.1
European Union 1.6 1.1 1.5 1.1 1.4 -0.2 -0.2
Euro area 1.4 0.9 1.4 0.9 1.2 -0.2 -0.2
United Kingdom of Great Britain and Northern Ireland 2.0 1.1 1.4 0.7 1.0 -0.4 -0.3
Other developed countries 2.6 1.6 1.4 1.6 1.9 0.0 0.0
Economies in transition 2.4 4.5 2.4 2.2 2.4 0.0 -0.1
South-Eastern Europe 2.0 3.5 2.4 3.0 3.5 -0.4 0.1
Commonwealth of Independent States and Georgia 2.4 4.6 2.4 2.1 2.3 0.0 -0.2
Russian Federation 1.9 4.3 1.0 1.0 1.2 0.0 -0.3
Developing economies 5.2 4.3 4.6 3.9 4.3 -0.3 0.0


Pakistan: Net FDI ($ Million)
Country 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25(Jul-Jan)
China 1,311.90 130.8 846.6 751.6 531.6 432.2 568.2 633.6
UK 304.6 185 119.1 141 31.8 65 268.2 148.2
USA 161.7 88.1 99.2 166.4 249.6 89.3 137.3 59
Hong Kong 183.6 171 190.7 157.2 137.7 101 358.5 154.7
Switzerland 78.5 21.2 62.8 61.7 146.2 134 28.7 115.7
U.A.E. -4.4 103.7 -44 115.7 143.9 180.1 87.3 68.2
Italy 56.6 51.9 57.4 36.3 34.8 8.6 1.9 1.2
Netherlands 100.3 69 133.2 96.9 104.1 71.9 71 47.2
Austria 27.4 7.6 3.8 1 0 -0.3 -1.7 -0.4
Japan 59.8 117.3 52.5 -13 -12.3 183 10.9 -3.4
Turkey 29.8 73.8 26.1 13.4 -0.3 17.6 11.1 6.3
Others 470.5 343 1,076.20 305.7 500.7 173.4 360.2 91.1
Total 2,780.30 1,362.40 2,597.50 1,820.50 1,867.80 1,455.80 1,901.60 1,523.60
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