ISLAMABAD: The federal government has unveiled the 2025-26 budget, prioritizing fiscal discipline, digital transformation, and social protection to stabilize the economy and spur growth.
Key measures include stringent deficit control, tax reforms, and massive allocations for energy, agriculture, and climate resilience.
Fiscal Discipline & Revenue Mobilization
The budget targets a fiscal deficit of 5.5% of GDP, with FBR reforms to increase the tax-to-GDP ratio to 10%.
Digital tools like AI-driven audits and e-invoicing will combat tax evasion, while non-filers face stricter penalties.
Sectoral Reforms & Privatization
The energy sector will see a PKR 389 billion reduction in circular debt, tariff rationalization, and a push for renewable energy.
Privatization of PIA, DISCOs, and non-essential SOEs is accelerated to reduce fiscal burdens.
Social Protection & Digital Transformation
The Benazir Income Support Programme (BISP) expands by 15%, focusing on vulnerable women.
E-governance initiatives and a $25 billion IT export target aim to digitize public services and boost tech startups.
Infrastructure & Climate Resilience
PKR 69 billion is allocated for water infrastructure, while PKR 16 billion will fund climate adaptation projects.
A carbon levy on furnace oil and flood management programs address environmental challenges.
Major Allocations & Challenges
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Health: PKR 21 billion
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Education: PKR 18.5 billion
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BISP: PKR 592 billion
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Energy Debt Relief: PKR 389 billion
Inflation control (12.3% target) and tax evasion remain key challenges.
