The federal government is targeting the creation of 2 million new jobs during fiscal year 2026-27, according to budget details that emerged ahead of the presentation of the federal budget, offering a glimpse into the economic priorities set for the next fiscal year.
The budget, expected to exceed Rs. 17.5 trillion, outlines employment generation as a key objective alongside economic growth and inflation management. Under the proposed plan, the government aims to create 1.1 million jobs in the services sector, 500,000 jobs in industry, and 400,000 jobs in agriculture.
The targets are part of a broader strategy to support economic expansion and improve labor market conditions.
Budget documents indicate that the government has set an economic growth target of 4 percent for fiscal year 2026-27, while inflation is projected at 8.2 percent. The agriculture sector is expected to grow by 3.8 percent, industry by 4 percent, large scale manufacturing by 4.5 percent, and services by 4.2 percent.
The details also show that the government is targeting tax revenues of Rs. 15,267 billion and non tax revenues of Rs. 2,767 billion in the coming fiscal year. Petroleum levy collections are projected at Rs. 1,727 billion, while debt servicing costs are expected to remain the largest expenditure item at Rs. 7,824 billion. Defense spending is proposed at nearly Rs. 3 trillion.
Meanwhile, the National Economic Council has approved a national development plan worth Rs. 3,669 billion. The federal Public Sector Development Programme is expected to have an allocation of Rs. 1,000 billion, while provincial development projects will receive Rs. 2,218 billion.
Authorities have also decided that no new development projects will be launched during the next fiscal year except those related to defense and the Ministry of Interior.
The budget framework suggests a continued focus on fiscal discipline, with the federal and provincial governments expected to jointly generate development expenditure savings of Rs. 1,046 billion. Development allocations have been reduced by Rs. 701 billion in Punjab, Rs. 110 billion in Sindh, and Rs. 109 billion in Khyber Pakhtunkhwa.
Budget proposals under consideration also include tax relief for salaried individuals worth around Rs. 50 billion. The government is reviewing changes to income tax slabs and rates that could provide relief to middle and upper income earners. Sources said individuals earning more than Rs. 183,000 per month may benefit from the proposed measures, while the surcharge on annual incomes exceeding Rs. 10 million could be removed.
The upcoming fiscal year is also expected to face external sector pressures. Officials estimate the trade deficit could exceed $37 billion, with exports targeted at $32.8 billion and imports projected at $70 billion. Against this backdrop, the government’s ability to achieve its ambitious job creation target will likely depend on whether the projected economic growth materializes and investment activity gains momentum during the year.
