In Pakistan, the annual budget is seen as an opportunity for the government to express its economic priorities and development strategies. The current government has presented the fiscal year 2025–2026 budget at a critical juncture when the country is facing an economic crisis, rising debt, inflation, and a water emergency.

This budget will not only impact the daily lives of the people but also determine the future direction of Pakistan. In this column, we compare the current budget with the previous two budgets (2023–2024 and 2024–2025), while also analyzing its potential effects on various social and economic classes.

Comparative Analysis of Budgets 2023–2024, 2024–2025, and 2025–2026:

In the 2023–2024 budget, the total size was PKR 14.5 trillion, with a revenue target of PKR 9.2 trillion. This increased to PKR 16 trillion in 2024–2025, with a revenue target of PKR 10.2 trillion. The 2025–2026 budget now stands at PKR 18.5 trillion, with a tax collection target of PKR 12 trillion.

The fiscal deficit was 7.6 percent of GDP in 2023–2024, reduced to 6.9 percent in 2024–2025, but is expected to rise again to 7.2 percent in 2025–2026, which is an alarming indicator. The current account deficit stood at $2.8 billion in 2023–2024, which improved to USD 1.9 billion in 2024–2025. However, due to an........

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