Pakistan passes PKR 18.77 trillion budget after opposition walkout

Pakistan's lower house of parliament approved a PKR 18.77 trillion federal budget for fiscal year 2026-27 on Tuesday. The session was charged with opposition protests and a walkout during voting on the finance bill.

The government passed the budget after rejecting a series of opposition amendments.

Why did the opposition walk out during the budget vote?

Lawmakers from the Pakistan Tehreek-e-Insaf (PTI) and allied parties left the chamber in protest as the government rejected their proposed amendments to the finance bill.

Members of the Jamiat Ulema-e-Islam (JUI) stayed in the chamber and moved selected amendments of their own. The walkout reflected broader opposition anger over how the session was conducted.

Opposition leader Mahmood Khan Achakzai criticised the proceedings, accusing the government of undermining constitutional norms and weakening state institutions.

He called for dialogue between political forces and urged Prime Minister Shehbaz Sharif to strengthen parliament and uphold constitutional supremacy. "Pakistan will only survive as long as it provides justice to its people," Achakzai said, also calling for greater civilian oversight of powerful state institutions.

How did the government respond to opposition criticism?

Prime Minister Shehbaz Sharif defended his government and rejected claims that it lacked legitimacy. He said that if questions persisted over past electoral outcomes, investigations could be conducted into both the 2018 and 2024 elections.

Sharif also pointed to Pakistan's recent role in facilitating Iran-US talks, saying discussions hosted with international partners in Switzerland had helped secure a ceasefire framework and could open the door to broader negotiations.

National Assembly Speaker Sardar Ayaz Sadiq defended his own conduct during the session, rejecting opposition allegations of procedural violations. He said parliamentary proceedings would not permit remarks against state institutions or the constitution.

What are the key figures in Pakistan's 2026-27 budget?

The approved budget sets a Federal Board of Revenue (FBR) tax collection target of PKR 15.26 trillion and projects non-tax revenue at PKR 5.33 trillion. The fiscal deficit target stands at PKR 5.22 trillion, or 3.6% of GDP, alongside a primary surplus target of PKR 2.82 trillion in line with IMF commitments.

Defense spending has been allocated around PKR 3 trillion, while pensions are set at PKR 1.16 trillion, and the federal Public Sector Development Program (PSDP) has been approved at PKR 1 trillion.

What changes will Pakistanis see from the new budget?

The finance bill revises income tax slabs, with updated rates for salaried individuals, income from social media platforms and property transactions. Duties on imported vehicles, including electric vehicles, will also be adjusted starting July 1.

These changes form part of the broader tax measures included in the approved finance bill.