Save Our Pak
Finance Minister Muhammad Aurangzeb has announced the new federal budget for the year 2025-26. The total size of the budget is Rs17.573 trillion, and it is focused on helping Pakistan grow economically.
While presenting the budget in the National Assembly, the Finance Minister said that this budget is the first step of a new plan. The goal is to make Pakistan’s economy stronger and more competitive. He said it will help grow the country’s foreign exchange reserves, fix the payment gaps, and boost overall productivity.
Here are the main points of the new national budget for 2025-26:
1- Pakistan’s economy is expected to grow by 4.2% during the 2025-26 year. Inflation is likely to stay around 7.5%. The budget deficit will be 3.9% of the total economy (GDP), and the primary surplus will be 2.4% of GDP.
2- The FBR (Federal Board of Revenue) is expected to collect Rs14,131 billion, which is 18.7% more than last year. Out of this amount, Rs8,206 billion will go to the provinces.
3- The non-tax income of the federal government is planned to be Rs5,147 billion.
4- The total income of the federal government is estimated at Rs17,573 billion.
5- The total expenses are also estimated to be Rs17,573 billion, and from this, Rs8,207 billion will be used to pay interest on previous loans.
6- The ongoing expenses (routine government spending) will be around Rs16,286 billion.
7- The government will spend Rs1,000 billion on development projects under the Public Sector Development Programme (PSDP).
8- A big amount of Rs2,550 billion has been kept for defence. The civil administration will get Rs971 billion, and Rs1,055 billion is kept for pensions. Another Rs1,186 billion will be used to give subsidies in sectors like electricity.
9- Rs1,928 billion will be used for grants — this includes funds for BISP (Benazir Income Support Programme), Azad Jammu and Kashmir, Gilgit-Baltistan, and merged districts of Khyber Pakhtunkhwa.
10- The budget for BISP is Rs16 billion, which is 21% higher than the current year’s budget.
11- There is also a proposal to give Rs140 billion to Azad Jammu and Kashmir, Rs80 billion to Gilgit-Baltistan, Rs80 billion to the merged districts of KP, and Rs18 billion to Balochistan from the federal spending.
