Pakistan Budget 2026-27 Unveiled: Rs17.5 Trillion Plan Targets 4% Growth and 2 Million Jobs

Ashhad Shahid
Published June 11, 2026

Pakistan’s proposed Federal Budget 2026-27 has been unveiled, outlining a total outlay of Rs17.5 trillion, with a focus on economic stabilization, growth acceleration, and large-scale employment generation amid ongoing fiscal pressures.

According to official budget estimates, the government has set a GDP growth target of 4%, while keeping average inflation at 8.2%, reflecting efforts to balance expansion with macroeconomic stability.

Key Macroeconomic Targets in Budget 2026-27

The budget highlights several major economic indicators:

Total Budget Size: Rs17.5 trillion
Tax Revenue Target: Rs15,267 billion
Non-Tax Revenue: Rs2,768 billion
Petroleum Levy Collection: Rs1,727 billion
Federal PSDP (Development Budget): Rs1,000 billion
Debt Servicing: Rs7,824 billion
Defense Allocation: Around Rs3,000 billion

The government has also projected stronger activity across key sectors, with agriculture growth at 3.8%, industrial growth at 4%, large-scale manufacturing at 4.5%, and services sector growth at 4.2%.

Trade, External Sector & Remittances Outlook

The external account projections show continued pressure on imports:

Goods Exports: $32.8 billion
Goods Imports: $70 billion
Trade Deficit Target: $37 billion
Total Exports: $44.13 billion
Total Imports: $83.78 billion
Remittances Target: $42.38 billion
Current Account Deficit: $3.6 billion (0.7% of GDP)

These figures highlight reliance on remittances and export growth to manage external financing gaps.

Investment, Savings & Employment Targets

The budget sets ambitious social and economic goals:

National Savings Target: 14.3%
Investment Target: 15%
New Job Creation Goal: 2 million jobs

Employment distribution targets include:

Services sector: 1.1 million jobs
Industrial sector: 500,000 jobs
Agriculture sector: 400,000 jobs

Federal PSDP 2026-27 Allocation Breakdown

The Public Sector Development Programme (PSDP) has been set at Rs1,000 billion, focusing on infrastructure, energy, education, and regional development.

Key allocations include:

Transport & Communication: Rs356 billion
SOEs: Rs451 billion
Corporations: Rs313 billion
NHA (National Highway Authority): Rs224.5 billion
Water Resources: Rs103 billion
Social Sector: Rs180 billion
Power Division: Rs88 billion
Special Areas Development: Rs88.8 billion
HEC (Higher Education Commission): Rs46 billion
Federal Education: Rs36 billion
Science & IT: Rs41.4 billion
Health Sector: Rs22.1 billion
CPEC Phase II: Rs1 billion

Economic Outlook

The budget reflects a strategy aimed at fiscal consolidation, infrastructure expansion, and export-led growth, while maintaining tight control over inflation and debt servicing costs, which remain the largest expenditure head at over Rs7.8 trillion.