Finance Minister Senator Muhammad Aurangzeb is scheduled to present the budget in Parliament.

Sources familiar with the budget preparations said the government has proposed a tax revenue target of Rs15.267 trillion for the next fiscal year, while non-tax revenues are projected at Rs2.767 trillion.

According to the proposals, the government aims to achieve economic growth of 4% in FY2026-27 while keeping inflation at 8.2%. Officials said the petroleum levy is expected to generate Rs1.727 trillion in revenue.

Sources said Rs7.824 trillion has been earmarked for debt servicing, while the defence budget is proposed to increase to around Rs3 trillion.

The budget framework sets an export target of $32.8 billion, and estimates imports at $70 billion during the next fiscal year, according to officials.

The government has also proposed sectoral growth targets of 3.8% for agriculture and 4% for industry, sources said.

Officials said the budget aims to create two million jobs in FY2026-27 as part of broader economic growth plans.

Meanwhile, the National Economic Council (NEC) has approved a national development plan worth Rs3.669 trillion.

According to budget documents, the federal Public Sector Development Programme (PSDP) has been proposed at Rs1 trillion, while provincial development programmes are expected to total Rs2.218 trillion.

Sources said the federal and provincial governments plan to generate combined savings of Rs1.046 trillion through reductions in development spending. The proposals include cuts of Rs701 billion in Punjab’s development budget, Rs110 billion in Sindh and Rs109 billion in Khyber Pakhtunkhwa.

Officials said the government intends to prioritise completion of ongoing projects and is unlikely to launch major new development schemes during the next fiscal year.

The budget also contains proposals to provide nearly Rs60 billion in tax relief to salaried individuals, according to sources.

The government is considering increasing income tax slabs from Rs600,000 to Rs800,000 and offering relief to taxpayers earning more than Rs183,000 per month.

Sources said a reduction of five percentage points in the applicable tax rate has been proposed for individuals earning around Rs267,000 per month. More than 400,000 employees could benefit from the relief measures if approved.

Under the proposals, individuals earning about Rs467,000 per month could face a tax rate of 29%, while a 32% rate is under consideration for those earning approximately Rs583,000 per month.

Officials said the existing 35% tax rate is likely to remain in place for individuals earning more than Rs583,000 per month and for those with annual incomes exceeding Rs7 million.

The government is also considering abolishing the surcharge on annual incomes above Rs10 million, sources said.

All proposed measures remain subject to approval by the federal cabinet before the budget is formally presented in Parliament.