The National Assembly and Senate budget sessions for the fiscal year 2026-27 have been officially summoned, setting the stage for the presentation of Pakistan’s next federal budget amid growing pressure from government employees seeking substantial pay and pension increases.
President-approved sessions of both houses of parliament will be held on June 5. The National Assembly budget session has been summoned for 5pm, while the Senate session will begin at 6pm on the same day.
A special meeting of the federal cabinet is also scheduled for June 5 ahead of the budget presentation.
Before the budget, the National Economic Survey 2025-26 will be released on June 4, providing an overview of the country’s economic performance during the outgoing fiscal year.
Budget preparation enters final phase
Officials said work on budget proposals, tax measures and fiscal recommendations for the new financial year is continuing.
According to preliminary proposals, the total volume of the federal budget for 2026-27 is expected to be Rs17.1 trillion. The government is proposing an economic growth target of 4.1%, while average inflation for the next fiscal year is estimated at 8.4%.
Budget documents under consideration suggest a tax revenue target of Rs15,267 billion. The petroleum levy target is proposed at Rs1,727 billion, while non-tax revenue is expected to reach Rs2,768 billion.
The federal Public Sector Development Programme (PSDP) is likely to have an allocation of Rs1.1 trillion.
Major allocations under consideration
The government is proposing to allocate Rs7,824 billion for interest payments on loans. A further Rs2,665 billion is expected to be earmarked for the defence sector.
These allocations will form a significant portion of overall federal expenditures in the upcoming fiscal year.
Govt, employees clash before budget
Even before the budget announcement, differences have emerged between the government and government employees over salary and pension adjustments.
Government officials have indicated that relief for employees and pensioners may be provided in proportion to inflation. However, employee representatives say the proposed measures are insufficient given rising living costs.
Employees demand up to 100% increase in salaries, pensions
The All Government Employees Grand Alliance (AGEGA) has demanded salary and pension increases of up to 100%. The alliance is also calling for the implementation of the agreement reached with the government on March 10, 2025.
AGEGA has warned that failure to implement its charter of demands will result in a full-scale protest movement.
Government employees have decided to stage a sit-in outside the Ministry of Finance and parliament on budget day. The protest is scheduled to take place one day before the federal budget announcement.
Employee organizations say demonstrations will continue if their demands are ignored.
Key demands include minimum wage, pension reforms
Among the major demands, employees have called for the minimum wage for workers to be set at Rs50,000 per month. They have also demanded that the minimum pension be increased to Rs50,000.
In addition, government workers are seeking a 30% disparity reduction allowance to bridge salary gaps affecting lower-paid and deprived employee groups.
The upcoming budget is being closely watched by businesses, investors, public-sector employees and pensioners alike.
With ambitious revenue targets, significant expenditure commitments and growing demands for employee relief, the fiscal year 2026-27 budget is expected to play a key role in shaping Pakistan’s economic direction in the months ahead.
