ISLAMABAD:
The federal government is likely to set a GDP growth target of 5.1 percent and a tax collection target of over Rs 15.5 trillion in the budget for the next fiscal year (2026-2027), even as global lenders expect the economy to expand at a slower pace.
Finance Ministry sources said preparations for the upcoming budget are in the final stages, with proposals received from various stakeholders under review and workable suggestions being incorporated.
The budget is being aligned with the benchmarks agreed under the International Monetary Fund (IMF) programme.
The global lender’s review mission is expected to visit Pakistan next month for detailed consultations before finalizing the proposals.
The government is likely to present the budget to parliament in the first ten days of June.
According to sources, the proposed growth target of 5.1 per cent represents an increase over the 4.2 per cent target set for the current fiscal year.
However, the IMF, the World Bank (WB) and the Asian Development Bank (ADB) have projected lower growth than estimated by the government.
On the revenue side, the government is considering setting a fiscal target of over Rs 15.5 trillion for 2026-27, compared to Rs 14.131 trillion for the current fiscal year.
Despite a downward revision in targets, the Federal Board of Revenue (FBR) has recorded a deficit of Rs 610 billion in the first nine months of the current fiscal year.
To broaden the tax base, the government aims to add one million new taxpayers for income tax returns by June this year, followed by another 750,000 by March next year.
