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Pakistan

Federal Cabinet approves draft of Rs. 17.5 Trillion ederal Budget for the next fiscal year

The current economic situation, the government is making every effort to provide maximum relief to the public:Dr. Tariq Fazal

GNN Web Desk
Published 2 hours ago on Jun 12th 2026, 3:38 pm
By Web Desk
Federal Cabinet approves draft of Rs. 17.5 Trillion ederal Budget for the next fiscal year
Islamabad: During a meeting chaired by Prime Minister Shehbaz Sharif, the Federal Cabinet approved the draft of the federal budget for the upcoming fiscal year, amounting to Rs. 17.5 trillion.

According to sources, Federal Finance Minister Muhammad Aurangzeb gave a detailed briefing to cabinet members on the key features of the new budget, after which the cabinet formally approved it. The budget will now be presented in the National Assembly. The Prime Minister stated that the budget had been prepared with dedication and sincerity, with the welfare of the nation as its top priority.

In this regard, Federal Minister for Parliamentary Affairs Dr. Tariq Fazal Chaudhry said that after its presentation in the National Assembly, the budget documents would be presented in the Senate at 5:00 PM.

The proposed budget sets a total tax revenue target of Rs. 15.267 trillion. The government plans to allocate a substantial Rs. 7.824 trillion for debt servicing and interest payments. Additionally, the defense budget is estimated at Rs. 3 trillion to meet the country's security requirements.

The government has also planned to collect Rs. 1.727 trillion through the petroleum levy. Furthermore, the budget sets an export target of $32.8 billion and an import target of $70 billion. There is also a strong possibility of an increase in salaries and pensions for government employees as a relief measure.

The federal government has revised its development strategy. Under the new approach, no new development projects will be launched during the next fiscal year; instead, efforts will focus on completing ongoing projects. At the same time, tax exemptions currently available to the former FATA regions may be withdrawn during the new fiscal year.

Speaking on the matter, Pakistan Muslim League (N) leader Dr. Tariq Fazal Chaudhry said that, considering the current economic situation, the government is making every effort to provide maximum relief to the public. He added that PML-N and members of all coalition parties would actively participate in the budget session.

Addressing the opposition, Tariq Fazal Chaudhry urged opposition lawmakers to play a constructive democratic role during the budget session. He said they should listen carefully to the Finance Minister’s budget speech rather than creating disruptions, so that they can offer positive and constructive economic suggestions.

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