Pakistan's Budget 2025-26: A Balancing Act Between Debt and Development

Pakistan Unveils Budget 2025-26: Focus on Debt, Defense, and Development Pakistan's National Assembly recently presented the federal budget for fiscal year 2025-26, outlining key spending priorities and revenue projections. The budget reveals a significant allocation of 8207 billion rupees for debt servicing, reflecting the government's commitment to managing its financial obligations. Defense spending is also substantial, with 2550 billion rupees allocated to bolster national security. Administrative costs are set at 971 billion rupees. The budget also includes provisions for social programs and development initiatives. Subsidies are planned at 1186 billion rupees, aiming to mitigate the impact on citizens. A considerable sum of 1000 billion rupees is earmarked for development projects, indicating a focus on infrastructure and economic growth. To fund these initiatives, the government has set an ambitious tax collection target of 14131 billion rupees. Non-tax revenue is projected at 5167 billion rupees. While the budget aims to balance economic growth with fiscal responsibility, the substantial debt servicing component highlights the ongoing challenges faced by the nation's economy. The success of this budget will depend on effective implementation and the achievement of projected revenue targets.