Federal Government Sets Budget Priorities for FY2026–27

Islamabad – The Federal Government initiated preparations for the FY2026–27 budget, targeting 5.1% GDP growth and 6.5% inflation. Key focus areas include green taxes, climate-related subsidies, disaster budgeting, and non-tax revenue enhancement. Ministries are required to tag expenditures related to climate adaptation and mitigation, including agriculture, clean energy, and electric vehicles. IMF review mission preparations are underway, with expected approval for a $1 billion tranche upon successful assessment. Authorities stressed alignment with sustainable development and fiscal transparency principles.