Pakistan has announced its federal budget for the fiscal year 2025-26, setting the total outlay at Rs17,573 billion. The budget places significant emphasis on defense spending and debt servicing, as reflected in the official documents.
Defense allocations have been raised to Rs2,550 billion, marking an increase of around 19% compared to the previous year’s figure of Rs2.1 trillion. This rise highlights the government’s ongoing priority to strengthen national defense amid prevailing regional security dynamics.
Debt servicing continues to consume a major share of the national budget, with Rs8,207 billion set aside for interest payments on domestic and external loans. Meanwhile, Rs8,206 billion has been allocated for distribution to the provinces, supporting local governance and development initiatives.
The government anticipates total revenues of Rs19,278 billion for the year, with non-tax revenues projected at Rs5,147 billion. The Federal Board of Revenue (FBR) has been assigned an ambitious tax collection target of Rs14,131 billion, underscoring the government’s intent to enhance revenue streams for sustaining development programs and essential services.
