Government secures approval for Finance Bill 2026 with focus on economic stability, social protection, and sustainable growth.
ISLAMABAD: The National Assembly on Tuesday approved the Finance Bill 2026 after conducting a clause-by-clause review and rejecting all amendments proposed by opposition members.
The passage of the bill paves the way for implementing the federal government’s financial proposals for the fiscal year beginning July 1, 2026.
Minister for Finance and Revenue Senator Muhammad Aurangzeb moved the motion for consideration of the Finance Bill 2026, which was adopted by a majority vote.
Following detailed deliberations, lawmakers approved the bill through a clause-by-clause reading.
Rs18.77 Trillion Budget Targets Economic Stability
The federal budget for fiscal year 2026-27 has a total outlay of Rs18.77 trillion. The government aims to strengthen macroeconomic stability, boost exports, improve foreign exchange reserves, reduce fiscal imbalances, and ensure sustainable economic growth.
According to budget estimates, Pakistan’s economy is expected to grow by 4.0% during FY2026-27, while inflation is projected at 8.2%. The fiscal deficit has been targeted at 3.6% of GDP, with a primary surplus estimated at 2.0% of GDP.
The Federal Board of Revenue (FBR) has been assigned a revenue collection target of Rs15.264 trillion. Net federal revenues are projected at Rs11.752 trillion, while debt servicing and markup payments are expected to consume around Rs8.05 trillion.
Higher Development Spending and Social Protection
The government has allocated Rs1 trillion for the Federal Public Sector Development Programme (PSDP), while the overall national development programme stands at nearly Rs3.675 trillion. Significant allocations have also been made for pensions, subsidies, civil administration, and welfare initiatives.
Funding for the Benazir Income Support Programme (BISP) has been increased to Rs838 billion to expand coverage and provide greater assistance to low-income families.
Salary Increase and Reform Measures
The budget includes a 7% increase in salaries and pensions for government employees, along with additional relief measures for public sector workers and armed forces personnel.
It also introduces tax reforms, energy sector measures, digital economy regulations, investment facilitation policies, and initiatives aimed at industrial development, electric vehicles, exports, and long-term economic growth. The government says the fiscal plan is designed to promote inclusive growth and strengthen Pakistan’s economy.
