The federal government has summoned the budget sessions of both the National Assembly and the Senate for June 5, when the federal budget for fiscal year 2026-27 is expected to be presented.

A special meeting of the federal cabinet has also been scheduled for the same day to approve the budget proposals before they are laid before parliament.

Ahead of the budget announcement, the government will release the Economic Survey of Pakistan 2025-26 on June 4, offering a detailed picture of the country’s economic performance during the outgoing fiscal year.

Preliminary estimates suggest the size of the federal budget for FY2026-27 will be around Rs. 17.1 trillion. The government is expected to set an economic growth target of 4.1 percent, while average inflation for the next fiscal year is projected at 8.4 percent.

Under the proposed budget framework, tax revenue is targeted at Rs. 15.267 trillion, while non-tax revenue is estimated at Rs. 2.768 trillion. The government is also expected to earmark Rs. 1.1 trillion for the federal Public Sector Development Programme.

Debt servicing is likely to remain the single largest expenditure head, with Rs. 7.824 trillion proposed for interest payments. Defense spending is expected to rise to Rs. 2.665 trillion, while the petroleum levy collection target for the next fiscal year has been set at Rs. 1.727 trillion.

The budget is being finalized at a time of growing tension between the government and public sector employees over salary and pension adjustments. Officials have indicated that any relief may broadly align with inflation, but employee representatives are demanding increases of up to 100 percent in both salaries and pensions.

A coalition of government employees has announced plans to stage protests outside the Ministry of Finance a day before the budget and outside Parliament on the day of its presentation. Employee representatives have warned that a broader protest campaign could follow if their demands are not reflected in the final budget.