Pakistan presented the fiscal year 2026-27 budget, which proposes spending of 18.7 trillion rupees ($67 billion), Reuters reported on June 12. The government forecast 4% GDP growth, 8.2% inflation and a fiscal deficit of 3.6% of GDP, while targeting total revenue of 20.6 trillion rupees, including 15.26 trillion rupees in tax revenue.

The budget signals that Pakistan will likely prioritize macroeconomic stability and IMF program compliance over growth-enhancing public investment, increasing pressure on authorities to improve tax collection and broaden the revenue base. The budget raises defense spending by 18% to 3 trillion rupees, following the 2025 conflict with India, and estimates that higher global oil prices could widen the fiscal deficit by an additional 0.8% of GDP.