8/June/2025

Discover the key highlights of Pakistan’s Budget 2025–26. From tax reforms to development spending and from defense to education health, here’s how the government plans to steer the economy amid growing challenges.

Pakistan Budget 2025-26 latest

Pakistan’s Federal Budget 2025–26 has been officially presented in the National Assembly, and will be announced on  June 10, 2025. and it carries significant economic and political weight. With the country emerging from a period of economic stress, high inflation, and currency depreciation, this year’s budget has been termed a “bold and balanced” attempt to revive growth, stabilize public finances, and provide relief to ordinary citizens and a common man.

Let’s dive into the major takeaways from this year’s budget and understand in detailed about the pakistan budget 2025-26 and how it affects Pakistan’s economy and its people.

Key Facts of the Pakistan Budget 2025–26

1. Total Budget Outlay:
   The government has announced a total budget outlay of PKR 18.9 trillion, which marks a substantial increase from previous budget of 2024-25 it was 15.1 trillion PKR. This expansion reflects the growing fiscal needs of the country and rising costs of governance.

2. Tax Revenue Target:
   In the budget speech for Fiscal Year 2025–26 presented by Finance Minister Muhammad Aurangzeb, the government of Pakistan set a tax revenue target of PKR 12.4 trillion for the Federal Board of Revenue (FBR) which is nearly 22% increase from last year. New measures to expand the tax base include digital tracking of transactions and greater scrutiny of undocumented businesses.

3. Public Sector Development Programme (PSDP):
   A budget of PKR 1.5 trillion has been allocated for PSDP to boost infrastructure, energy, and education projects across all stats of Pakistan. This is in line with the government’s commitment to long-term economic growth.

4. Education & Health: PKR 790 billion allocated for education, 7x increase from PKR 103 billion in 2024–25. so it is a positive initiative. PKR 600 billion allocated for health as reported by government officials and estimates .This includes spending on hospitals, health insurance, disease prevention, and UHC (Universal Health Coverage)

5. Defense and Security: Defense spending has been increased to PKR 2.1 trillion, citing regional tensions and internal security concerns. specially the recently pakistan india armed clashes

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