Overview
- The major provinces presented their FY2026-27 budgets during June 17–18, offering no new provincial taxes and a standard 7 percent rise in government salaries and pensions.
- Punjab unveiled a record Rs5.9 trillion plan that keeps recurrent spending high but sharply trims its Annual Development Programme by about 40 percent to roughly Rs752 billion.
- Sindh proposed a Rs3.56 trillion budget with a roughly Rs720 billion development outlay after a near 30 percent cut, while the province kept social measures such as a higher minimum wage and a Rs13.2 billion support package.
- Balochistan stood out by presenting a reported surplus budget of about Rs1.089 trillion that includes creation of 5,000 government jobs and expanded health and education allocations.
- Federal and provincial leaders say the temporary three-year freeze of some provincial development funds is a negotiated constitutional step to meet extraordinary national financing needs, a move that could free hundreds of billions of rupees but will squeeze project completion and donor counterpart financing.