The Ministry of Finance has revealed its Medium-Term Macroeconomic Framework, projecting a positive economic outlook for the upcoming fiscal year. The report anticipates increased economic growth and reduced inflation. According to the Finance Ministry report, the Gross Domestic Product (GDP) growth is expected to reach 4.8% for 2025-26. In addition to this growth, inflation is forecasted to decrease from 12% to 7.5% in the coming year.
The Federal Board of Revenue (FBR) is expected to see an increase in tax revenue to Rs15,555 billion. Non-tax revenue collection is estimated to reach Rs3,851 billion, while the petroleum levy is projected to generate Rs1,388 billion from consumers. However, the ministry predicts a significant financial deficit of Rs 9,655 billion.
The interest bill on loans is projected to exceed Rs10,000 billion, with a total expenditure of Rs10,283 billion allocated for loan interest. On the external front, the report anticipates exports to total $37.95 billion and remittances to reach $31.70 billion in the next fiscal year. The pension bill is expected to rise to Rs1,166 billion, while civil affairs expenses are projected to be Rs881 billion.
In terms of defense and development, the government plans to allocate Rs2,337 billion for defense expenditures and Rs1,480 billion for development projects. This economic framework outlines a strategic approach to managing fiscal policies and development priorities, aiming to foster economic stability and growth while addressing budgetary challenges.
