The Federal Board of Revenue (FBR) has set an ambitious tax collection target of Rs. 15.264 trillion for fiscal year 2026-27, marking one of the highest revenue goals in Pakistan’s history.
Sources told ProPakistani that total revenue receipts are projected at Rs. 20.6 trillion, while net revenue receipts are estimated at Rs. 11.751 trillion after the transfer of Rs. 8.848 trillion to provinces under the National Finance Commission (NFC) Award.
The Rs. 15.264 trillion tax target forms part of Pakistan’s commitments under the IMF program and will be supported by a series of new taxation measures and enforcement initiatives expected to be detailed during the technical budget briefing later today.
According to budget documents, non-tax revenue is projected at Rs. 5.336 trillion during FY2026-27, helping lift gross federal revenue receipts to Rs. 20.6 trillion.
To bridge the gap between revenues and expenditures, the government plans to raise Rs. 2.034 trillion through non-bank borrowing, including National Savings Schemes and other public account instruments. Net external receipts are estimated at Rs. 813 billion, while bank borrowing through treasury bills, Pakistan Investment Bonds (PIBs), and Sukuk is projected at Rs. 4.012 trillion. The budget also assumes Rs. 161 billion in privatization proceeds.
These financing sources are expected to generate total additional resources of Rs. 7.02 trillion, taking overall federal resources for FY2026-27 to Rs. 18.771 trillion.
On the expenditure side, the federal government has budgeted Rs. 17.495 trillion for current spending. Interest payments will remain the largest expenditure item at Rs. 8.054 trillion, followed by defense affairs and services at Rs. 3 trillion.
The government has also allocated Rs. 2.68 trillion for grants and transfers, Rs. 1.169 trillion for pensions, Rs. 1.091 trillion for subsidies, and Rs. 1.071 trillion for running civil government operations. A further Rs. 430 billion has been earmarked for emergencies and other contingencies.
Development and net lending expenditures are budgeted at Rs. 1.276 trillion, including Rs. 1 trillion for the Federal Public Sector Development Programme (PSDP) and Rs. 276 billion for net lending.
Overall, total federal expenditures for FY2026-27 are projected at Rs. 18.771 trillion, matching the government’s estimated resources for the year.