Web Desk: Preparations for Pakistan’s Budget 2026-27 have started as the federal government has finalized its key priorities for the upcoming fiscal year.
According to the Ministry of Finance, the government has set a GDP growth target of 5.1% for the next financial year. The ministry expects inflation to remain limited to 6.5% in the new budget.
The Finance Ministry said the upcoming budget will place special focus on green tax, non-tax revenue, and climate-related subsidies, as Pakistan moves towards a framework aimed at green growth and environmental protection.
Focus on climate spending and green revenue
All ministries have been directed to identify their environmental and climate-related expenditures in budget proposals. The government has also made separate tagging of climate change-related income and spending mandatory.
The document states that the disaster budgeting framework will be strengthened further to improve preparedness and response to natural disasters. Given Pakistan’s increasing exposure to floods, heatwaves and other climate events, disaster-related spending will be monitored separately.
It further noted that non-tax income will be assessed in terms of environmental impact, while levies on pollution-causing activities will be linked with climate goals. For green revenue generation, the government will priorities reforms in energy, transport, and pollution control measures.
Climate subsidies and budget transparency
According to the document, natural resource categories and subsidies will be divided into climate adaptation and climate mitigation.
Subsidies for adaptation may include agriculture insurance and climate-resilient infrastructure, while mitigation subsidies may include clean energy projects and support for electric vehicles. The government said the budget will also focus on transparency and achieving environmental targets.
Budget-making schedule approved
The Finance Ministry has issued the Budget Call Circular, formally approving the budget preparation schedule.
The ministry said the Interim Economic Framework will be prepared during the current month, while the Mid-Year Review Report will be presented in the National Assembly in February 2026.
All ministries have been instructed to submit key budget forms, revised estimates of revenue and expenditures, and development project details by February 20.
Budget Review Committee meetings will be held from March 30 to April 12, 2026, while exchange rate-related information will be shared on April 15.
Approval of the Budget Strategy Paper is expected by April 20, and budget ceilings for current and development spending will be issued between April 21 and April 25.
The Annual Plan Coordination Committee (APCC) meeting will be held in the first week of May, while the National Economic Council meeting is expected in the second week of May. All budget documents will be finalised by the end of May, and quarterly budget estimates will be submitted by June 30.
Relief expected for salaried class
Meanwhile, preparations have begun for the third economic review talks between Pakistan and the International Monetary Fund (IMF).
Sources said the IMF review mission is expected to visit Pakistan next month. If the review is completed successfully, Pakistan may receive the next tranche of $1 billion.
Officials said the government will negotiate with the IMF to provide relief to the public, especially the salaried class and the industrial sector. On the Prime Minister’s instructions, the government has decided to set new priorities for IMF negotiations and seek solid proposals within the next two weeks to convince the Fund on relief measures.
