Budget 2025-2026

Budget 2025-2026

Pakistan – Complete Overview, Highlights & Analysis

Meta Description:

Explore Pakistan’s Budget 2025-2026 – key allocations, development priorities, tax reforms, and economic targets. A complete breakdown for readers and analysts.

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Introduction: The federal government of Pakistan has presented the Budget 2025-2026 during a crucial phase of economic recovery and political reform. Aimed at stabilizing the economy, creating jobs, and controlling inflation, this budget outlines key reforms in taxation, public sector development, and social welfare programs. Here’s a complete breakdown of the budget that every Pakistani should know.

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🏛️ Total Budget Size

The total size of the Federal Budget 2025-26 is approximately PKR 18 trillion, reflecting increased spending on development, debt servicing, and defense.

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💰 Revenue Collection Target

Total revenue target: PKR 13 trillion

Emphasis on expanding the tax base

Reduction in indirect taxes

Continued support from IMF programs

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🛠️ Public Sector Development Programme (PSDP)

Allocation: PKR 1.5 trillion

Priority areas: Infrastructure, education, energy, and health

Special funds for underdeveloped regions including Balochistan and Gilgit-Baltistan

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🛡️ Defense Budget

Allocation: PKR 2.2 trillion

Reflects strategic defense needs and regional security concerns

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🧑‍⚕️ Health & Education

Education: PKR 250 billion

Health: PKR 200 billion

Focus on improving public schools, university reforms, and rural healthcare facilities

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🧾 Social Welfare Programs

PKR 1 trillion allocated for subsidies and social protection

Major programs:

Benazir Income Support Programme (BISP)

Ehsaas Programme

Direct cash transfers and food security initiatives for low-income families

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⚙️ Key Economic Indicators & Targets

GDP growth target: 4.5%

Inflation forecast: 12% (down from 16%)

Fiscal deficit target: 5.9% of GDP

Exchange rate management: Stable rupee under IMF compliance

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🌿 New Government Initiatives

Digital Pakistan Program: Tax relief for IT freelancers and tech startups

Agricultural Loans: Interest-free credit and fertilizer subsidies

Renewable Energy Push: Solar projects and hydropower investments

Privatization Plan: Reviving stalled privatization of loss-making SOEs

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⚠️ Challenges to Watch

Rising debt and interest payments

Inflationary pressures due to global oil prices

Political instability affecting implementation

Public resistance to tax documentation and reforms

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📊 Public Opinion & Expert Views

Positive reactions from business chambers and IT sector

Criticism on continued reliance on IMF and insufficient tax reforms

Concerns about practical execution and governance bottlenecks

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Conclusion: The Pakistan Budget 2025-2026 presents a hopeful yet challenging roadmap. While it prioritizes economic recovery and social equity, effective implementation and political stability will be key to its success.

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Tags: #PakistanBudget2025 #Budget2026Pakistan #PSDP #TaxReforms #PakEconomy #mujeebmb #BISP #IMFBudget