Budget 2025-26: Pakistan Eyes $44.9B Exports, $39.4B Remittances; Current Account Deficit Capped at 0.5% of GDP
Pakistan has set ambitious economic targets in its Annual Development Plan for FY2025–26, with exports projected to reach $44.9 billion and remittances expected to contribute $39.4 billion. To manage external finances, the government aims to limit the current account deficit to just 0.5% of GDP, approximately $2.1 billion.
According to official sources, the federal budget, worth Rs17,600 billion, is set to be presented tomorrow. Revenue collection is estimated at Rs19,400 billion, with the FBR’s tax collection target fixed at Rs14,130 billion.
Key Budget Highlights:
- Exports: $35.3B (goods) + $9.6B (services)
- Imports: $65.2B (goods) + $14B (services)
- Debt Servicing: Rs6,200B — the largest single expense
- Budget Deficit: Targeted to remain at current levels
- Salary Relief: 10% hike for govt employees; 5–7.5% rise in pensions
Sectoral Allocations:
- Defense: 18% increase
- Education: Rs13.58B
- Health: Rs14.3B
- Digital/IT Economy: Rs16.22B
The budget reflects a balancing act between fiscal discipline and development spending, while aligning with IMF guidelines to improve revenue and narrow the deficit. The government also appears focused on digitization, youth employment, and stabilizing foreign exchange flows through exports and remittances.
