ISLAMABAD: Pakistan Finance Minister Muhammad Aurangzeb on Friday began presenting the Federal Budget 2026-27 in parliament after Prime Minister Shehbaz Sharif said public welfare had been given “utmost priority” in the fiscal plan.
The government is expected to unveil a budget exceeding Rs17 trillion ($60 billion) as it seeks to balance fiscal consolidation commitments under an International Monetary Fund (IMF) program with demands for economic growth, inflation relief and increased development spending.
Sharif’s administration twice postponed Federal Budget 2026-27 this month as it continued consultations with coalition partners over key decisions. The government eyes 4 percent economic growth in the next fiscal year and plans to collect more than Rs15 trillion ($54 billion) in taxes.
Before Aurangzeb began presenting the fiscal plan in parliament, Sharif said his administration had sought to prioritize public welfare while preparing the budget.
“This budget has been prepared with great diligence and sincerity,” Sharif said on X. “The welfare and prosperity of Pakistan’s great nation has been given utmost priority.”
The federal cabinet approved budget documents and the draft finance bill at a meeting held in Islamabad shortly before the budget presentation as several government employees gathered near the parliament building to protest in support of demands related to salaries and pay structures.
Police arrested several protesters, according to local media reports.
Addressing the cabinet, Sharif said the government had spent the past six weeks holding extensive consultations with Punjab, Sindh, Balochistan and Khyber Pakhtunkhwa while finalizing the fiscal plan.
“We started a meaningful dialogue with the provinces,” he said, thanking provincial leaders and coalition partners for supporting the federal government’s efforts.
Sharif specifically acknowledged the support of Punjab Chief Minister Maryam Nawaz, President Asif Ali Zardari, PPP Chairman Bilawal Bhutto Zardari and the chief ministers of Balochistan and Khyber Pakhtunkhwa, saying the budget had been finalized after detailed discussions.
The remarks came amid scrutiny of the role provinces would play in supporting the government’s fiscal targets under its IMF-backed reform program. Officials have said the lender sought a substantial provincial contribution alongside new federal revenue measures in the upcoming budget.
The government also released the Economic Survey on Thursday, which showed that Pakistan’s economy expanded 3.7 percent and reached a record size of $452.1 billion in the outgoing fiscal year 2025-26, while average inflation eased to 6.7 percent during the July-May period from 23.4 percent in the previous fiscal year.
The survey attributed the improvement to stronger manufacturing activity, easing inflation and a more stable external position despite regional tensions, volatile energy prices and global economic uncertainty.
