Pakistan’s Federal Budget 2025-26, totaling Rs17,573 billion, features significant allocations across key sectors. The defense sector receives Rs2,550 billion, marking a 19% increase from the previous year’s Rs2.1 trillion allocation, reflecting heightened security priorities.
Debt servicing claims the largest share at Rs8,207 billion for interest payments, while provincial transfers account for Rs8,206 billion to support regional development. The government projects total revenues of Rs19,278 billion, comprising Rs5,147 billion in non-tax revenue and an ambitious Rs14,131 billion tax collection target for the FBR.
These allocations demonstrate the government’s dual focus on maintaining national security while addressing fiscal challenges through enhanced revenue mobilization efforts. The budget aims to balance defense needs with economic stability through strict revenue targets and substantial debt management provisions.
