The federal government on Tuesday unveiled Rs 17.573 trillion budget for the fiscal year 2025-26, targeting a sharply lower fiscal deficit of 3.9 percent of GDP, or Rs 5.037 trillion, as it seeks to strike a delicate balance between IMF-mandated fiscal discipline and economic relief. The government aims to maintain momentum under the IMF’s Extended Fund Facility (EFF), offering modest public sector salary hikes, targeted tax relief for salaried classes and capital markets, while expanding levies to broaden the tax base and raise Rs1.16 trillion in additional revenues through the Federal Board of Revenue (FBR).
