Finance minister presents Rs18.77tr growth-focused budget for FY26–27 in NA

Finance Minister Muhammad Aurangzeb on Friday presented a Rs18.771 trillion federal budget for the fiscal year 2026–27 in the National Assembly, marking a 6.81 per cent increase over the Rs17.573 trillion budget of the outgoing year.

In his budget speech, the minister said the government’s focus is on supporting economic growth, improving revenue collection and providing relief across different sectors while maintaining overall fiscal discipline.

He said the Federal Public Sector Development Programme (PSDP) has been set at Rs1 trillion as part of efforts to balance development spending with economic constraints.

Aurangzeb added that the budget places emphasis on development projects, social protection, and policies aimed at stabilising the macroeconomic situation while encouraging investment and job creation.

Referring to the recent economic performance, the finance minister said the country recorded GDP growth of 3.7 per cent despite challenges including regional conflict and flood-related losses. He said large-scale manufacturing grew by 6.1 per cent, while the services sector expanded by 4.1 per cent.

He further noted that both the LSM and services sectors achieved their highest growth rates in four years.