BUDGET 2026-27: Govt balances relief and IMF diktat (opens original article in a new tab)

The 2026-27 budget maintains IMF fiscal targets, freezes provincial transfers for three years to create fiscal space, and increases defense spending while implementing tax reforms and relief measures.

• Budget maintains IMF targets for revenue, deficit, and primary surplus.
• Provincial divisible pool frozen at Rs13.35tr for three years, creating Rs1.9tr fiscal space for federal government.
• Defense spending increases by 17.7% to Rs3tr, with additional funds for emergency needs and other grants.