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Pakistan Economy: Pakistan Federal Budget 2025-26 Consolidation continues - By Insight Research

  • By: Insight Securities (Private) Limited

  • - Published: Wednesday, 11 June 2025
  • Pakistan Economy
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  • The Finance Minister presented the Federal Budget for FY26 in yesterday's National Assembly session . The targets set by the government are ambitious, with the fiscal deficit projected at 3 . 9 % of GDP and a primary surplus of 2 . 4 % . A GDP growth target of ~ 4 . 2 % has also been set . Broadly, the budget aligns with the IMF’s guidance on continued fiscal consolidation . However, the budget falls short on some structural reforms . There are limited efforts to tax the largely untaxed segments, particularly the retail and wholesale sectors, which continue to contribute minimally to the tax base alongside agriculture and real estate . While the government has recently introduced legislative measures targeting agricul...

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