Federal Budget 2026-27 Session Scheduled for June 5

Updated: 6:08 PM PKT — May 29, 2026

The federal government has proposed a budget of Rs 17.1 trillion for the fiscal year 2026-27, targeting an economic growth rate of 4.1% and an average inflation rate of 8.4%. Key proposed allocations include Rs 7,824 billion for interest on loans and Rs 2,665 billion for the defense sector. The government aims for a tax revenue target of Rs 15,267 billion and a petroleum levy target of Rs 1,727 billion, with the federal Public Sector Development Programme (PSDP) expected to be Rs 1.1 trillion.

A potential 7 to 10 percent increase in salaries and pensions for government employees is also part of the proposal, though this has sparked a dispute. Government employee organizations are demanding a 100% increase and have threatened sit-in protests at the Ministry of Finance and Parliament if their demands are not met. The National Economic Council will meet on June 3 to approve the annual development plan, followed by the release of the current year’s Economic Survey on June 4.