Annual Budget Statement
The Annual Budget Statement is part of the federal budget for FY 2025-26. This page reproduces the text of its 54 PDF pages, extracted automatically from the official PDF published by the Finance Division, Government of Pakistan.
This text was extracted automatically from the PDF's text layer. Tables may lose their column alignment, and a page with no text layer is marked rather than guessed. Check the official PDF before relying on any figure.
Page 1
FEDERAL BUDGET
2 0 2 5 - 2 6
ANNUAL
BUDGET
STATEMENT
GOVERNMENT OF PAKISTAN
FINANCE DIVISION
ISLAMABADPage 2
No text layer on this page, see the official PDF.
Page 3
PREFACE
Article 80(1) of the Constitution of the Islamic Republic of Pakistan
stipulates that the Federal Government shall, for every financial year, lay before the
National Assembly a statement of estimated receipts and expenditure of the Federal
Government for that year, known as the Annual Budget Statement. As per Article
80(2), the statement must show separately the charged and other expenditures from
the Federal Consolidated Fund, and must also distinguish expenditures on revenue
account from other expenditures. In accordance with Article 73(1) of the
Constitution, the statement is also transmitted to the Senate.
Section 4 of the Public Finance Management Act, 2019, requires that the
Annual Budget Statement shall include a statement of purpose, a statement of
contingent liabilities of the Federal Government, and a statement of fiscal risks.
Additionally, Section 8 of the Act requires the Federal Government to lay before the
National Assembly a statement of estimated tax expenditure for each financial year.
Furthermore, Sections 5 and 10 of the Fiscal Responsibility and Debt
Limitation Act, 2005, require the presentation of a medium-term budgetary statement
and statements of responsibility to the National Assembly. These are also included as
part of the Annual Budget Statement.
It is further noted that the Explanatory Memorandum on Federal Receipts
and the Demands for Grants and Appropriations form the explanatory portion of the
Annual Budget Statement for FY2025-26.
IMDAD ULLAH BOSAL
Secretary to the Government of Pakistan
Finance Division
Islamabad, the 10th June, 2025Page 4
No text layer on this page, see the official PDF.
Page 5
CONTENTS PAGE
I. Summary of Receipts …………………………………………………… 1
II. Revenue Receipts …………………………………………………… 2 - 4
III. Capital Receipts ……………………………………………………. 5
IV. External Receipts ……………………………………………………. 6
V. Public Account Receipts …………………………………………………… 7 - 10
VI. Summary of Expenditure …………………………………………………. 11
VII. Current Expenditure on Revenue Account ……………………………… 12 - 14
VIII. Current Expenditure on Capital Account ……………………………… . 15
IX. Development Expenditure on Revenue Account ………………………… 16 - 17
X. Development Expenditure on Capital Account ………………………… 18
XI. Capital Expenditure ……………………………………………………. 19
XII. Public Account Expenditure ……………………………………………… 20 - 23
XIII. Estimated Charged and Other Expenditure
met from Federal Consolidated Fund ……………………………………. 24
XIV. Statement of Purpose …………………………………………………… . 25
XV. Demand for Grants and Appropriations for Expenditure 2025-26
Demand-Wise Expenditure (Schedule-I) ……………………………… 26 - 33
XVI. Demand for Grants and Appropriations for Expenditure 2025-26
Object Wise (Schedule III) .................................................... 34
XVII. Statement of Contingent Liabilities …………………………………… 35 - 37
XVIII Statement of Fiscal Risk ……………………………………………...... 38 - 40
XXI Statement of Estimated Tax Expenditure ……………………………… 41
XX Medium Term Budgetary Statement 2025-28 ……………………........ 42 - 43
XXI Climate Budget Statement .........……………………….........……....... - 44
XXII Gender Budget Statement …..……………………………...........…….... - 45
XXIII Disaster Budget Statement .....….……..….………………...........…….. - 46
XXIII Statements of Responsibility ……………………………….........…..... 47 - 48Page 6
No text layer on this page, see the official PDF.
Page 7
SUMMARY OF RECEIPTS
Federal receipts are categorized as Revenue Receipts, Capital Receipts, Public Account Receipts
and External Receipts. These receipts, except Public Account Receipts, become part of the the
Federal Consolidated Fund.
As per Section 22 of the Public Finance Management Act, 2019, the operation of the Federal
Consolidated Fund and the Public Account of the Federation rests with Finance Division.
(Rs in million)
Budget Revised Budget Object Description Estimates Estimates Estimates Code 2024-25 2024-25 2025-26
A- Revenue Receipts - Federal Consolidated Fund
B 1 Tax Revenue Receipts 12,970,000 11,900,000 14,131,000
FBR Taxes 12,970,000 11,900,000 14,131,000
B01 Direct Taxes 5,512,000 5,826,000 6,902,000
B02 Indirect Taxes 7,458,000 6,074,000 7,229,000
C 2 Non-Tax Revenue Receipts 4,845,415 4,902,123 5,147,090
B03 Levies and Fees 24,809 26,808 29,790
Income from Property andC01 477,117 472,494 519,332 Enterprises
Receipts from Civil AdministrationC02 2,555,738 2,663,554 2,450,392 etc
C03 Miscellaneous Receipts 1,787,751 1,739,268 2,147,576
3 Total Revenue Receipts (1+2) 17,815,415 16,802,123 19,278,090
E 4 Capital Receipts 3,034,379 898,642 3,266,924
E02 Recovery of Loans and Advances 491,999 572,597 603,000
Domestic Debt Receipts (NonE03 2,542,380 326,045 2,663,924 Bank) - Net
5 Total Internal Receipts (3+4) 20,849,794 17,700,765 22,545,013
6 External Receipts 5,685,801 5,833,308 5,777,554
Total Internal and External 7 26,535,595 23,534,073 28,322,568 Receipts (5+6)
Public Account of Federation B - Net Receipts
G 8 Public Account Receipts 120,232 230,903 210,127
Deferred Liabilities (Net) 53,035 143,833 120,610
Deposit and Reserves (Net) 67,197 87,069 89,517
9 Gross Federal Resources (7+8) 26,655,827 23,764,975 28,532,694
Less Provincial Share in Federal 10 7,438,000 6,996,951 8,205,723 Taxes
11 Net Federal Resources (9-10) 19,217,827 16,768,024 20,326,971
Cash Balance Surplus by the 12 1,217,000 1,009,000 1,464,000 Provinces
13 Privatization Proceeds 30,000 8,000 86,550
Domestic Debt Receipts 14 3,924,003 3,717,904 1,970,590 (Bank) - Net
15 Total Resources (11+12+13+14) 24,388,830 21,502,928 23,848,112Page 8
REVENUE RECEIPTS
Revenue Receipts constitute major component of total Federal resources. Revenue Receipts are
categorized as Tax Revenue Receipts and Non-Tax Revenue Receipts, and are derived from the
following sources:-
Tax Revenue Receipts
Tax Revenue is administered by the Federal Board of Revenue (FBR), which comprises of
Customs Duty and Inland Revenue i.e Direct Taxes, Sales Tax and Federal Excise Duty. FBR
taxes may also be categorized as Direct Taxes and Indirect Taxes. Direct Taxes comprise of
Income Tax, Capital Value Tax, WWF (Ordinary Collection) and Contribution under Companies
Profit (WPPF). Indirect Taxes include Sales Tax, Federal Excise Duty and Customs Duty. A
snapshot of Budget Estimates is as under:-
(Rs in million)
Budget Revised Budget Object Description Estimates Estimates Estimates Code 2024-25 2024-25 2025-26
B Tax Revenue
FBR Taxes 12,970,000 11,900,000 14,131,000
B01 i.Direct Taxes 5,512,000 5,826,000 6,902,000
B011 Taxes on Income 5,454,062 5,749,392 6,811,243
B017-18 Capital Value Tax (CVT) 15,662 14,512 17,192
B01501 WWF (Ordinary Collection) 16,637 21,727 25,740
WPPF(Contribution underB01502 25,639 40,369 47,825 Companies Profit)
B02 ii.Indirect Taxes 7,458,000 6,074,000 7,229,000
B020-22 Customs Duties 1,591,000 1,316,000 1,588,000
B023 Sales Tax 4,919,000 3,984,000 4,753,000
B024-25 Federal Excise 948,000 774,000 888,000
1 Total Tax Revenue (i+ii) 12,970,000 11,900,000 14,131,000Page 9
REVENUE RECEIPTS
Non-Tax Revenue Receipts
As per Section 2(a) of the Public Finance Management Act, 2019 (amended), Non-Tax Revenue
means revenues received by the Government in terms of Article 78(1) of the Constitution and the
recurring income of the Government from investments and provision of services but does not
include those mentioned in Article 160(3) of the Constitution. Non-Tax Revenue of the Federal
Government is administered by various Ministries / Divisions / Departments. Budget Estimates are
as under:-
(Rs in million)
Budget Revised Budget
Object Description Estimates Estimates Estimates Code
2024-25 2024-25 2025-26
C Non Tax Revenue
B03 a) Levies and Fees 24,809 26,808 29,790
B03087 Mobile Handset Levy 10,000 10,000 12,000
B013-030 Receipts of ICT Administration 14,756 16,755 17,737
B03064 Airport Fee (PCAA) 53 53 53
b) Income from Property andC01 477,117 472,494 519,332 Enterprises
C01008 Surplus Profit of PTA 1,200 1,431 1,100
C01008 PTA (License Renewal Fees) 32,612 27,001 22,049
Regulatory Authorities (SurplusC01012 10,036 655 6,239 Profit)
C012-18 Mark up Receipts 294,353 245,446 283,810
C012 Mark up Receipts (Provinces) 96,353 95,446 95,810
Mark up Receipts ( PSEs &C013-18 198,000 150,000 188,000 Others)
C019 Dividends 138,915 197,961 206,134
c) Receipts from Civil
C02 Administration & Other 2,555,738 2,663,554 2,450,392
Functions
C021-24 General Administration Receipts 4,846 3,641 5,841
Surplus Profit of State Bank ofC02211 2,500,000 2,619,603 2,400,000 Pakistan
C025 Defence Services Receipts 42,427 34,602 35,442
C026 Law and Order Receipts 1,954 2,506 5,625
C027 Community Services Receipts 4,586 1,770 1,904
C028-29 Social Services 1,925 1,433 1,580
Contd….Page 10
(Rs in million)
Budget Revised Budget
Object Description Estimates Estimates Estimates Code
2024-25 2024-25 2025-26
C03 d) Miscellaneous Receipts 1,787,751 1,739,268 2,147,576
C031-35 Economic Services Receipts 16,916 71,638 34,785
Foreign Grants (BudgetaryC03601 15,000 6,000 2,000 Support)
C03725 Extraordinary Receipts (UNO) 46,000 32,500 31,200
C037 Extraordinary Receipts (Others) 5,854 4,722 6,400
Nationalization, Passport andC03897 75,005 75,000 76,500 Others
C038 Other Receipts of Attached Deptts 100,516 84,802 109,009
C03901 Petroleum Levy 1,281,000 1,161,000 1,468,395
Natural Gas DevelopmentC03902 25,618 48,000 49,437 Surcharge
C03905 Royalty on Crude Oil 58,654 64,000 69,000
C03906 Royalty on Natural Gas 103,751 135,000 138,000
Discount Retained on Local CrudeC03910 25,000 25,000 30,000 Price
C03915 Windfall Levy against Crude Oil 28,000 27,000 20,000
Gas Infrastructure DevelopmentC03916 2,500 1,000 2,400 Cess
C03917 Petroleum Levy on LPG 3,537 3,156 5,000
Off the Grid (Captive Power Plant)C03920 - - 105,000 Levy
C03917 Windfall Levy on Gas 400 450 450
Total Non-Tax RevenueC 2 4,845,415 4,902,123 5,147,090 (a+b+c+d)
3 Total Revenue Receipts (1+2) 17,815,415 16,802,123 19,278,090Page 11
CAPITAL RECEIPTS
Capital receipts comprise of Recoveries of Loans and Advances from Provinces and other entities
and Public Debt which includes Permanent Debt and Floating Debt. Budget Estimates are as
under:-
(Rs in million)
Budget Revised Budget
Object Description Estimates Estimates Estimates Code
2024-25 2024-25 2025-26
I. Recoveries of Loans andE02 491,999 572,597 603,000 Advances
E021 Provinces 479,999 479,999 584,000
E022-27 PSEs and Others 12,000 92,598 19,000
II. Total Domestic DebtsE03 21,592,415 21,979,944 16,671,113 Receipts (a+b)
E031 a) Permanent Debt Receipts 9,070,245 8,006,324 7,323,395
Pakistan Investment Bonds (Bank) 5,182,427 5,200,005 4,079,641
Pakistan Investment Bonds (Non 408,319 543,444 326,754 Bank)
Premium Prize Bonds (Registered) 30,000 20,000 26,000
Ijara Sukuk Bonds 3,066,000 1,878,875 2,514,000
ICBC (Foreign Currency 383,500 364,000 377,000 Denominated Domestic Loan)
E032 b) Floating Debt Receipts 12,522,169 13,973,619 9,347,718
Prize Bonds 11,169 16,768 17,718
Treasury Bills Through Auction 12,511,000 13,868,418 8,430,000
Govt. Bai-Maujjal Ijara Sukuk - 88,433 900,000
4 Capital Gross Receipts (I+II) 22,084,414 22,552,541 17,274,113
Domestic Debt Receipts 21,592,415 21,979,944 16,671,113
Domestic Debt Repayment (page- 19,050,034 21,653,899 14,007,189 17)
Net Domestic Debt Receipts 2,542,380 326,045 2,663,924
Total Federal Internal Gross 5 39,899,829 39,354,664 36,552,203 Receipts (3+4)Page 12
EXTERNAL RECEIPTS
External Resources comprise of loans and grants received from multilateral, bilateral and other
sources. Budget Estimates are as under:-
(Rs in million)
Budget Revised Budget
Description Estimates Estimates Estimates
2024-25 2024-25 2025-26
I. Loans 4,964,460 5,158,743 5,047,928
Project Loans (PSDP) 306,732 372,068 215,719
Federal 54,482 135,844 89,422
Autonomous Bodies 252,249 236,224 126,297
Programme Loans 278,778 500,510 418,699
Federal & Autonomous Bodies 278,778 440,726 330,267
Provinces - 59,785 88,433
Other Loans 4,378,951 4,286,164 4,413,510
II.Grants 10,268 15,543 13,281
Project Grants (PSDP) 10,268 15,543 13,281
Federal (PSDP) 6,506 15,243 11,237
Autonomous Bodies 3,762 300 2,044
a. External Receipts (I +II) 4,974,728 5,174,286 5,061,209
b. Project Loans & Grants 711,073 659,022 716,345 (Others)
Project Loans (Others) 90,665 35,227 241
Federal Projects 72,562 35,227 241
Autonomous Bodies 18,103 - -
Grants (Others) 3,408 6,796 2,195
Federal Projects 2,300 6,796 2,195
Autonomous Bodies 1,109 - -
Project Loans & Grants 617,000 617,000 713,909 (Provinces)
Loans 617,000 578,044 686,521
Grants - 38,956 27,388
6 Total External Receipts 5,685,801 5,833,308 5,777,554Page 13
PUBLIC ACCOUNT RECEIPTS
Article 78(2) provides that all other monies received by or on behalf of the Federal
Government shall be credited into the Public Account of the Federation. Therefore, all the
monies received by or on behalf of the Federal Government in terms of Article 78(2) are Public
Account receipts which are not revenues in terms of Article 78(1) of the Constitution. However,
such Public Account receipts cannot be operated without establishment of Special Purpose
Funds, deposits, reserves etc under the authority of an act of the Parliament or with the approval
of the Federal Government.There are two sources of Public Account Receipts as under:-
National Savings Schemes
National Savings Schemes include Savings bank accounts, Defence Savings Certificates, Special
Savings Certificates, Pensionery Benefit Accounts, Behbood Savings Certificates etc.
(Rs in million)
Budget Revised Budget
Object Description Estimates Estimates Estimates Code
2024-25 2024-25 2025-26
Investment Deposit Accountsi. G111 1,602,656 1,401,017 1,340,945 (Savings Schemes)
G11101 Savings Bank Accounts 663,642 575,400 606,781
G11106 Defence Savings Certificates 47,602 47,534 37,130
Special Savings CertificatesG11111 133,803 80,462 79,573 (Registered)
G11112 Special Savings Accounts 31,546 15,594 15,422
G11113 Regular Income Certificates 124,336 117,290 101,675
G11126 Pensionery Benefit Accounts 95,979 105,962 91,585
G11127 Behbood Saving Certificates 215,683 248,982 233,715
G11130 Shuhada Welfare Accounts 65 95 65
Sarwa Islamic Saving & Term New 170,000 39,698 55,000 Accounts
G11129 Short Term Savings Certificates 120,000 170,000 120,000
ii. G061 Provident Fund 51,160 62,203 59,606
Gross Public Account Receipts 1,653,816 1,463,220 1,400,551 ( i+ii )
Gross Public Account Receipts ( 1 1,653,816 1,463,220 1,400,551 i+ii )
Gross Public Account 1,600,781 1,319,387 1,279,941 Expenditure (Page-18)
Net Public Account Receipts 53,035 143,833 120,610
Contd…..Page 14
Deposits and Reserves (Receipts)
Deposits and Reserves represent all monies forming part of the Public Account of the
Federation as per Article 78(2) of the Constitution of Islamic Republic of Pakistan. Budget
estimates of receipts in the following table are however subject to fulfillment of following
stipulations:-
(i) The funds appropriated by the National Assembly out of Federal Consolidated Funds in terms
of Articles 80 to 84 of the Constitution for a particular financial year (being lapsable) shall be
utilized as per Cash Management and TSA Rules 2024 and shall not be deposited under these
deposits and reserves heads of account (being non-lapsable) under the Public Account.
(ii) The maintenance and operation of all these funds, deposits, reserves etc shall be subject to
their due establishment either under the authority of an act of Parliament or with the approval of
the Federal Government, as the case may be.
(iii) Revenues in terms of Article 78(1) of the Constitution shall not be deposited in these deposits
and reserves heads of account under the Public Account. The revenues shall only be deposited in
the respective heads of account of tax revenue and non tax revenue.
(iv) Receipt of funds into these deposits and reserves heads of account shall only be allowed by
the Accounting Offices subject to compliance of the stipulations at (i) to (iii) above and to the
extent of reconciled available balance under the respective head of account.
(Rs in million)
Budget Revised Budget Object Description Estimates Estimates Estimates Code 2024-25 2024-25 2025-26
G Deposits and Reserves
FGE Benevolent Funds 2,172 1,986 2,086
G06202 Civil 2,075 1,899 1,994
G06205 Pakistan Post Office Deptt. 4 7 7
G06206 Housing & Works Division 61 51 53
G06209 National Savings 25 24 25
G06210 Pakistan Mint - - -
G06212 Geological Survey of Pakistan 7 6 7
Group Insurance Fund 497 461 485
G06401 Housing & Works Division 7 9 9
G06404 National Savings 6 6 6
G06405 Pakistan Mint - - -
G06407 Geological Survey of Pakistan 2 2 3
G06409 Civil 481 443 466
Fed. Govt. Empl. Group Insur.G07104 0 1 1 Fund PPOD
Contd…..Page 15
(Rs in million)
Budget Revised Budget Object Description Estimates Estimates Estimates Code 2024-25 2024-25 2025-26
G Deposits and Reserves
Defence 11,868 27,693 29,078
FG Employees Benevolent FundG06203 4,486 4,269 4,483 (Defence)
G06410 Group Insurance Fund (Defence) 1,273 1,238 1,300
G11224 Deposits Accounts with Defence 6,109 22,185 23,295
Federal Pension Fund 10,000 - -
G12803 Federal Pension Fund Receipts 10,000 - -
Pakistan Post Office Department - - -
G07101 Post Office Renewal Reserve Fund - - -
G07102 Post Office Welfare Fund - - -
Housing & Works Division 74,122 3,405 3,575
G10101 Receipts & Collection Account 480 443 465
G10113 Deposits 73,642 2,963 3,111
G Deposits and Reserves 104,255 163,587 172,831
Miscellaneous Funds
G06304 Workers Welfare Fund 40,000 62,675 65,809
G06315 Judicial Officers Welfare Fund 3 3 3
G12140 PM Flood Relief Fund 2010 0 0.04 0.04
G12150 PM Relief Fund for IDPs 2014 150 166 175
PM COVID-19 Pandemic ReliefG12157 2 0 0 Fund 2020
PM's Relief Fund Flood,G12164 188 - - Earthquake Other Cal.
PM's Relief Fund for Turkiye &G12166 3 - - Syria Earthquake
PM's Relief Fund for Ghaza &G12169 - 161 169 Lebanon
Federal Govt. Artists Welfare FundG12226 185 - - (Heritage)
G12305 Export Development Fund 24,761 23,118 25,430
G1270X National Tariff Commission Fund - - 500
Reserve Fund for Exch. Risk onG12308 25,898 2,260 2,373 Foreign Loans
Pakistan Oil Seed DevelopmentG12412 158 180 189 Fund
Contd…..Page 16
(Rs in million)
Budget Revised Budget Object Description Estimates Estimates Estimates Code 2024-25 2024-25 2025-26
G Deposits and Reserves
G12419 Research and Development Fund 1,879 2,248 3,800
Diamer Basha and Mohmand DamG12421 - 58,816 61,757 Fund
G12504 Workers Children Education Fund 0 0 0
G12612 Fund for Urdu Science Board 2 1 1
Trust Interest Fund (CharitableG12712 5 4 4 Endowment)
National Fund for Control of DrugG12738 2 93 20 Abuse
G12783 Universal Service Fund 5,625 13,103 11,000
G1270G Board of Investment - 405 400
Miscellaneous Deposit and
Reserve Accounts
Mint Receipt and CollectionG10104 3,774 - - Account
G14100 Pakistan Mint 1,620 353 1,200
Gross Receipts (Deposits and 2 202,914 197,133 208,054 Reserves)
Exp. Deposit and Reserves 135,717 110,064 118,537 (page-23)
Net Deposit and Reserves 67,197 87,069 89,517 Receipts
3 Gross Receipts (1+2) 1,856,730 1,660,353 1,608,605
Gross Expenditure (page-23) 1,736,498 1,429,450 1,398,478
PUBLIC ACCOUNT NET 7 120,232 230,903 210,127 RECEIPTSPage 17
SUMMARY OF EXPENDITURE
(Current & Development)
In this table, the Budget Estimates of current expenditure (on revenue and capital account) and
Budget Estimates of Development expenditure (on revenue and capital accounts) have been
mentioned as per Article 80(2) of the Constitution of Pakistan.
(Rs in million)
Budget Revised Budget
Function Code Description Estimates Estimates Estimates
2024-25 2024-25 2025-26
Current Expenditure
a. Current Exp. on Revenue 17,203,391 16,390,174 16,286,045 Account
01 General Public Services 13,640,239 12,719,051 12,210,851
02 Defence Affairs and Services 2,128,781 2,189,913 2,557,950
03 Public Order and Safety Affairs 283,051 307,683 351,679
04 Economic Affairs 357,735 364,866 242,144
05 Environment Protection 7,252 7,257 3,168
06 Housing and Community Amenities 27,917 8,590 19,249
07 Health 28,171 52,130 31,975
08 Recreation, Culture and Religion 18,466 21,387 22,158
09 Education Affairs and Services 103,781 111,080 112,683
10 Social Protection 607,997 608,216 734,187
b. Current Exp. on Capital 5,168,439 3,398,098 5,787,114 Account
011 Foreign Loans Repayment 4,989,963 3,219,963 5,472,222
Repayment of Short Term Foreign 011 29,500 29,500 199,810 Credits
014 Transfers 148,976 148,635 115,082
Total Current Expenditure 1 22,371,830 19,788,272 22,073,159 (a + b)
Development Expenditure
c. Dev. Exp. on Revenue 952,558 773,387 590,774 Account
d. Dev. Exp. on Capital Account 1,064,442 941,270 1,184,179
Total Development Expenditure 2 2,017,000 1,714,656 1,774,953 (c+d)
Grand Total - Expenditure (1+2) 24,388,830 21,502,928 23,848,112
3 Break-up of Expenditure
Revenue Account (a+c) 18,155,949 17,163,560 16,876,819
Capital Account (b+d) 6,232,881 4,339,368 6,971,293
Total Expenditure: 24,388,830 21,502,928 23,848,112Page 18
Current Expenditure on Revenue Account
(Rs in million)
Budget Revised Budget
Function Code Description Estimates Estimates Estimates
2024-25 2024-25 2025-26
01 General Public Service 13,640,239 12,719,051 12,210,851
Executive & Legislative Organs,
011 Financial & Fiscal Affairs, 12,070,465 11,131,012 10,397,794
External Affairs
Debt Servicing 9,775,000 8,945,334 8,207,250
Servicing of Foreign Debt 1,038,602 1,038,602 1,009,322
Servicing of Domestic Debt 8,736,398 7,906,733 7,197,928
Superannuation Allowances & 1,014,000 1,014,000 1,055,000 Pensions
Others (Details are in "Demands 1,281,465 1,171,678 1,135,544 for Grants & Appropriation" book.)
012 Foreign Economic Aid 9,032 7,890 5,793
014 Transfers 1,456,094 1,473,398 1,682,477
Provinces 113,000 113,000 150,000
Others (Details are in "Budget in 1,343,094 1,360,398 1,532,477 Brief" book.)
015 General Services 31,712 29,868 23,990
016 Basic Research 10,035 9,443 10,229
Research & Dev. General Public 017 28,261 29,008 30,214 Services
018 Admn. of General Public Service 9,635 10,953 9,869
Gen. Public Services not 019 25,005 27,479 50,484 elsewhere defined
02 Defence Affairs and Services 2,128,781 2,189,913 2,557,950
021 Defence Services 2,122,000 2,181,496 2,550,000
A01 Employees Related Expenses 815,186 826,794 846,032
A03 Operating Expenses 513,328 547,013 704,399
A09 Physical Assets 548,612 550,192 663,077
A12 Civil Works 244,874 257,497 336,492
025 Defence Administration 6,781 8,417 7,950
03 Public Order and Safety Affairs 283,051 307,683 351,679
031 Law Courts 13,601 13,856 19,380
032 Police & Civil Armed Forces 255,305 286,390 321,177
033 Fire Protection 491 480 709
Prison Administration and 034 108 96 181 Operation
035 R&D Public Order and Safety 70 80 98
036 Administration of Public Order 13,477 6,780 10,135
Contd…..Page 19
Current Expenditure on Revenue Account
(Rs in million)
Budget Revised Budget
Function Code Description Estimates Estimates Estimates
2024-25 2024-25 2025-26
04 Economic Affairs 357,735 364,866 242,144
Gen. Eco., Commercial & Labour 041 204,400 203,866 117,035 Affairs
Agri., Food, Irrigation, Forestry & 042 24,661 26,723 33,476 Fisheries
043 Fuel and Energy 19,650 20,230 2,397
044 Mining and Manufacturing 9,503 9,311 7,586
045 Construction and Transport 45,877 44,412 46,228
046 Communications 51,510 58,041 33,103
047 Other Industries 1,347 1,536 1,525
Research & Development 048 785 748 793 Economic Affairs
05 Environment Protection 7,252 7,257 3,168
053 Pollution Abatement 6,290 6,290 2,155
Administration of Environment 055 962 967 1,013 Protection
Housing and Community06 27,917 8,590 19,249 Amenities
061 Housing Development 1,564 434 1,588
062 Community Development 26,353 8,156 17,661
07 Health 28,171 52,130 31,975
Medical Products, Appliances and 071 32 37 32 Equipments
073 Hospital Services 21,683 22,320 24,035
074 Public Health Services 1,110 24,488 1,139
076 Health Administration 5,346 5,286 6,768
08 Recreation, Culture and Religion 18,466 21,387 22,158
Recreational and Sporting 081 400 400 - Services
082 Cultural Services 1,244 1,415 1,503
083 Broadcasting and Publishing 12,404 15,631 16,488
Contd…Page 20
Current Expenditure on Revenue Account
(Rs in million)
Budget Revised Budget
Function Code Description Estimates Estimates Estimates
2024-25 2024-25 2025-26
084 Religious Affairs 1,861 1,968 2,094
Admn. of Information, Recreation & 086 2,556 1,974 2,074 Culture
09 Education Affairs and Services 103,781 111,080 112,683
Pre-Primary and Primary 091 5,224 5,812 5,841 Education Affairs and Services
Secondary Education Affairs and 092 12,624 14,149 14,420 Services
Tertiary Education Affairs and 093 79,312 84,651 82,012 Services
Education Services Not definable 094 726 896 3,738 by Level
095 Subsidiary Services to Education 273 313 392
096 Administration 4,497 3,833 4,825
Education Affairs & Services not 097 1,124 1,426 1,455 Elsewhere Classified
10 Social Protection 607,997 608,216 734,187
107 Administration 3,532 3,525 5,890
108 Others 1,449 1,402 1,303
Social Protection (Not elsewhere 109 603,017 603,289 726,994 classified)
a.Current Expenditure on 17,203,391 16,390,174 16,286,045 Revenue Account
Revised Estimates 2024-25 are as of 16th May, 2025 based on SAP SystemPage 21
Current Expenditure on Capital Account
(Rs in million)
Budget Revised Budget
Function Code Description Estimates Estimates Estimates
2024-25 2024-25 2025-26
01 General Public Service 5,168,439 3,398,099 5,787,114
011 Foreign Loan Repayment 4,989,963 3,219,963 5,472,222
Repayment of Short Term Foreign 011 29,500 29,500 199,810 Credits
014 Transfers 148,976 148,635 115,082
Federal Misc. Investments and
Other Loans and Advances by the 148,976 148,635 115,082
Fed. Govt.
b. Current Expenditure on 5,168,439 3,398,099 5,787,114 Capital Account
I. Total Current Expenditure 22,371,830 19,788,273 22,073,159 (a+b)Page 22
Development Expenditure on Revenue Account
(Rs in million)
Budget Revised Budget
Function Code Description Estimates Estimates Estimates
2024-25 2024-25 2025-26
01 General Public Service 496,471 446,810 391,839
Executive & Legislative Organs,
011 Financial & Fiscal Affairs, External 23,250 28,257 10,481
Affairs
014 Transfers 377,066 383,258 331,130
015 General Services 60,927 18,758 29,260
016 Basic Research 34,407 15,465 19,670
Research & Dev. General Public 017 321 619 921 Services
General Public Services not 019 500 453 377 elsewhere defined
02 Defence Affairs and Services 6,573 4,886 2,720
021 Military Defence 2,068 1,844 556
024 R & D Defence 330 456 248
025 Defence Administration 4,176 2,586 1,916
03 Public Order and Safety Affairs 3,007 3,099 2,921
031 Law Courts 1,230 929 1,912
032 Police and Civil Armed Forces 1,673 2,067 986
036 Administration of Public Order 104 104 23
04 Economic Affairs 305,820 209,555 105,611
Gen. Eco. Commercial and Labour 041 5,784 3,716 4,058 Affairs
Agri., Food, Irrigation, Forestry & 042 204,988 118,253 72,162 Fisheries
043 Fuel and Energy 32,124 31,225 7,009
044 Mining and Manufacturing 1,658 662 1,105
045 Construction and Transport 58,735 53,173 20,325
046 Communications 1,042 1,232 814
Research & Development 048 1,488 1,293 138 Economic Affairs
05 Environment Protection 6,257 3,535 2,784
Administration of Environment 055 6,257 3,535 2,784 Protection
Housing and Community06 7,057 4,889 7,977 Amenities
062 Community Development 7,005 4,889 7,971
063 Water Supply 52 - 6
Contd…..Page 23
Development Expenditure on Revenue Account
(Rs in million)
Budget Revised Budget
Function Code Description Estimates Estimates Estimates
2024-25 2024-25 2025-26
07 Health 28,185 22,194 15,102
073 Hospital Services 14,596 15,432 6,107
074 Public Health Services 11,846 6,073 8,700
076 Health Administration 1,743 690 295
08 Recreation, Culture and Religion 4,725 2,914 3,697
081 Recreation and Sporting Services 3,650 1,540 1,180
082 Cultural Services - - 250
083 Broadcasting and Publishing 1,075 1,375 1,616
084 Religious Affairs - - 650
09 Education Affairs and Services 87,869 73,760 55,824
093 Tertiary Edu. Affairs & Services 78,676 70,956 52,175
095 Subsidiary Services to Education 643 762 650
096 Administration - - 750
Education Affairs & Services not 097 8,550 2,042 2,249 Elsewhere Classified
10 Social Protection 6,594 1,743 2,300
107 Administration 6,594 1,743 2,300
c. Dev. Exp. on Revenue 952,558 773,387 590,774 Account
Revised Estimates of Development Expenditure 2024-25 are as of 05th June, 2025 based on
SAP SystemPage 24
Development Expenditure on Capital Account
(Rs in Million)
Budget Revised Budget
Function Code Description Estimates Estimates Estimates
2024-25 2024-25 2025-26
01 General Public Service 1,022,209 923,659 1,163,036
014 Transfers 996,952 898,403 1,162,275
017 Research and Dev. General Public
25,256 25,256 761
Services
04 Economic Affairs 41,984 17,076 21,144
Gen. Eco., Commercial and 041 671 741 719 Labour Affairs
043 Fuel and Energy 2,555 2,485 -
044 Mining and Manufacturing 4,919 2,129 1,904
045 Construction and Transport 33,839 10,672 17,280
046 Communications - 1,050 1,241
Housing And Community06 - - - Amenities
063 Water Supply - - -
08 Recreation, Culture and Religion 250 535 -
083 Broadcasting and Publishing 250 535 -
d. Dev. Expenditure on Capital 1,064,442 941,270 1,184,179 Account
II.Total Development 2,017,000 1,714,656 1,774,953 Expenditure (c+d)
III.Total Exp. 24,388,830 21,502,929 23,848,112 (Current+Development)Page 25
CAPITAL EXPENDITURE
The expenditure incurred on repayment of domestic debt is termed as Capital Expenditure.
(Rs in million)
Budget Revised Budget
Object Code Description Estimates Estimates Estimates
2024-25 2024-25 2025-26
A101 i.Domestic Permanent Debt 6,530,041 6,559,000 6,069,033
Pakistan Investment Bonds (Bank) 5,182,427 5,200,005 4,079,641
Pakistan Investment Bonds (Non 203,632 228,615 179,359 Bank)
Foreign Exchange Bearer 5 0 1 Certificates
Foreign Currency Bearer 5 0 1 Certificates
US Dollar Bearer Certificates 3 0 1
Special US Dollar Bonds 50 30 30
Premium Prize Bonds (Registered) 5,000 14,000 16,000
Ijara Sukuk Bond 752,531 751,630 1,414,000
Pakistan Banao Certificates (5- 2,888 2,876 3,000 years)
Principal Repayment of Foreign
Currency Denomated - Domestic 383,500 361,844 377,000
Debt
A104 ii.Floating Debt 12,519,993 15,094,899 7,938,156
Prize Bonds 8,993 5,299 5,156
Treasury Bills through Auction 12,511,000 15,089,600 7,930,000
Bai-Maujjal Ijara Sukuk Bonds - - 3,000
Total Public Debt RepaymentA10 IV. 19,050,034 21,653,899 14,007,189 (i+ii)
Total - Federal Consolidated V. 43,438,864 43,156,828 37,855,301 Fund Disbursement (III+IV)Page 26
PUBLIC ACCOUNT EXPENDITURE
National Savings Schemes
The expenditure incurred on repayment of National Savings Schemes is termed as Public
Account Expenditure.
(Rs in million)
Budget Revised Budget Object Description Estimates Estimates Estimates Code 2024-25 2024-25 2025-26
Investment Deposit Accountsi. G111 1,522,901 1,236,073 1,199,657 (Savings Schemes)
G11101 Savings Bank Accounts 644,376 578,714 597,849
G11103 Khas Deposit Accounts 5 5 5
G11104 Mahana Amadni Accounts 100 110 100
G11106 Defence Savings Certificates 78,275 52,152 53,940
G11108 National Deposit Certificates 1 1 1
G11109 Khaas Deposit Certificates 1 1 1
Special Savings CertificatesG11111 149,480 70,595 74,554 (Registered)
G11112 Special Savings Accounts 35,242 13,682 14,449
G11113 Regular Income Certificate 203,987 73,181 72,519
G11126 Pensionery Benefits 70,152 62,701 61,410
G11127 Behbood Saving Certificate 191,257 162,218 158,803
G11130 Shauhda Welfare Account 25 15 25
Sarwa Islamic Saving & Term New 40,000 59,698 51,000 Accounts
Short Term Savings Certificates 110,000 163,000 115,000 (STSC)
ii. G061 Provident Fund 77,880 83,314 80,285
1 Total Expenditure ( i+ii ) 1,600,781 1,319,387 1,279,941
Contd…..Page 27
Deposits and Reserves
Deposits and Reserves represent all monies forming part of the Public Account of the Federation
as per Article 78(2) of the Constitution of Islamic Republic of Pakistan. Budget estimates of
Expenditure (withdrawal of funds) from the Deposits and Reserves as depicted in the following
table are however subject to fulfillment of following stipulations:-
(i) The maintenance and operation of all these funds, deposits, reserves etc shall be subject to
their due establishment either under the authority of an act of Parliament or with the approval of
the Federal Government, as the case may be.
(ii) Withdrawal of funds from these deposits and reserves heads of account shall only be allowed
by the Accounting Offices subject to compliance of the stipulations at (i) above and to the extent
of reconciled available balance under the respective head of account.
(iii) There shall be no authority of direct access to Central Account No.1 (Non Food) in SBP.
(iv) Withdrawal of funds from these Deposits and Reserves heads of account shall be in
accordance with the provisions of Public Finance Management Act, 2019, Cash Management and
Treasury Single Account Rules 2024 and the Special Assignment Account Procedure for the
Public Account of the Federation 2021. Personal Ledger Accounts shall not be used for
withdrawal of funds.
(Rs in million)
Budget Revised Budget Object Description Estimates Estimates Estimates Code 2024-25 2024-25 2025-26
G Deposits and Reserves
FGE Benevolent Funds 2,151 1,462 1,535
G06202 Civil 2,060 1,386 1,455
G06205 Pakistan Post Office Deptt. - - -
G06206 Housing & Works Division 61 48 50
G06209 National Savings 24 22 23
G06210 Pakistan Mint - - -
G06212 Geological Survey of Pakistan 6 6 6
Group Insurance Fund 561 257 270
G06401 Housing & Works Division 7 5 5
G06404 National Savings 6 5 6
G06405 Pakistan Mint - - -
G06407 Geological Survey of Pakistan 2 2 2
G06409 Civil 546 244 257
Fed. Govt. Empl. Group Insur.G07104 - - - Fund PPOD
Contd.....….Page 28
(Rs in million)
Budget Revised Budget
Object Description Estimates Estimates Estimates Code
2024-25 2024-25 2025-26
G Deposits and Reserves
Defence 9,898 8,332 8,748
FG Employees Benevolent FundG06203 3,962 3,668 3,851 (Defence)
G06410 Group Insurance Fund (Defence) 1,235 1,211 1,272
G11224 Deposits Accounts with Defence 4,701 3,452 3,625
Federal Pension Fund 10,000 - -
G12803 Federal Pension Fund 10,000 - -
Pakistan Post Office Department 0 2 2
G07101 Post Office Renewal Reserve Fund - 2 2
G07102 Post Office Welfare Fund 0.04 - -
Housing & Works Division 55,047 20,453 21,476
G10101 Receipts & Collection Account 863 443 465
G10113 Deposits 54,184 20,010 21,011
G Deposits and Reserves 58,059 79,558 86,506
Miscellaneous Funds
G06304 Workers Welfare Fund 25,000 22,649 23,782
G06315 Judicial Officers Welfare Fund 0.26 0.18 0.19
G12140 PM Flood Relief Fund 2010 0.01 0.00 0.00
G12150 PM Relief Fund for IDPs 2014 150 1,313 1,379
PM COVID-19 Pandemic ReliefG12157 - - - Fund 2020
PM's Relief Fund Flood,G12164 1,150 - - Earthquake Other Cal.
PM's Relief Fund for Turkiye &G12166 845 - - Syria Earthquake
PM's Relief Fund for Ghaza &G12169 - 1 1 Lebanon
Federal Govt. Artists Welfare FundG12226 102 - - (Heritage)
G12305 Export Development Fund 6,865 10,250 12,300
G1270X National Tariff Commission Fund - - 500
Contd.....….Page 29
(Rs in million)
Budget Revised Budget Object Description Estimates Estimates Estimates Code 2024-25 2024-25 2025-26
Reserve Fund for Exch. Risk onG12308 - - - Foreign Loans
Pakistan Oil Seed DevelopmentG12412 - - - Fund
G12419 Reserch & Development Fund 7,587 2,064 2,167
Diamer Bhasha and MohmandG12421 - 29,408 30,878 Dam Fund
G12504 Workers Children Education Fund 0.01 - -
G12612 Fund for Urdu Science Board 4 0.17 0.18
Trust Interest Fund (CharitableG12712 0.03 - - Endowment)
National Fund for Control of DrugG12738 - - - Abuse
G12783 Universal Service Fund 10,967 9,934 10,431
G1270G Board of Investment - 150 100
G Deposits and Reserves
Miscellaneous Deposits and
Reserves Accounts
Mint Receipt and CollectionG10104 3,768 3,589 3,768 Account
G14100 Pakistan Mint 1,620 200 1,200
2 Total Deposits and Reserves 135,717 110,064 118,537
Total Public Account 3 1,736,498 1,429,450 1,398,478 Expenditure (1+2)Page 30
STATEMENT OF ESTIMATED CHARGED
AND VOTED EXPENDITURE
In terms of Article 80(2) of the Constitution of Pakistan, this statement distinguishes charged and
voted expenditure.
(Rs in million)
Budget Revised Budget Object Description Estimates Estimates Estimates Code 2024-25 2024-25 2025-26
Expenditure on Revenue I. 18,155,949 17,163,560 16,876,819 Account
Current 17,203,391 16,390,174 16,286,045
Development 952,558 773,387 590,774
Total-Authorized Expenditure 18,155,949 17,163,560 16,876,819
Charged 9,869,074 9,040,801 8,319,604
Voted 8,286,874 8,122,760 8,557,215
II. Expenditure on Capital Account 25,282,916 25,993,267 20,978,482
Current 24,218,474 25,051,997 19,794,303
Development 1,064,442 941,270 1,184,179
Total Authorized Expenditure 25,282,916 25,993,267 20,978,482
Charged 24,686,498 25,520,362 20,454,174
Voted 596,418 472,905 524,308
Total Expenditure met from III. Federal
Consolidated Fund 43,438,864 43,156,827 37,855,301
Current Expenditure 41,421,864 41,442,171 36,080,348
Development Expenditure 2,017,000 1,714,656 1,774,953
IV. Total-Authorized Expenditure 43,438,864 43,156,827 37,855,301
Charged - Total 34,555,572 34,561,163 28,773,778
Voted - Total 8,883,292 8,595,664 9,081,523Page 31
Statement of Purpose
This Statement is submitted in accordance with Section 4 of the Public
Finance Management Act, 2019. Aligned with the Federal Government’s policy
priorities, the demands for grants for FY2025-26 primarily address debt servicing of
both domestic and external obligations, as well as funding for recurrent and
development expenditures aimed at revitalizing sustainable economic growth. The
government remains focused on critical sectors such as health, education, climate
resilience, gender equity, and social sector development.
The Federal Government remains firmly committed to providing relief to the
most economically vulnerable populations. Through targeted social protection
initiatives, including subsidies on essential commodities such as food and electricity,
the Government seeks to cushion the impact of ongoing economic challenges. At the
same time, to stimulate economic activity and expand employment opportunities, the
Government will continue to support the industrial and agricultural sectors, with
particular emphasis on small and medium enterprises (SMEs).
IMDAD ULLAH BOSAL
Secretary to the Government of Pakistan
Finance Division
Islamabad, 10th June, 2025Page 32
Schedule-I
Statement of Demand-Wise Expenditure for Budget Estimates 2025-26
(Rs. in million)
Demand Budget Estimates 2025-26 Ministries / Divisions No. Charged Voted Total
1 CABINET - 689 689
2 CABINET DIVISION - 4,216 4,216
EMERGENCY RELIEF AND 3 - 2,927 2,927 REPATRIATION
4 ATOMIC ENERGY - 20,082 20,082
PAKISTAN NUCLEAR REGULATORY 5 - 2,257 2,257 AUTHORITY
NAYA PAKISTAN HOUSING 6 - 1,588 1,588 DEVELOPMENT AUTHORITY
PRIME MINISTER'S OFFICE 7 - 858 858 (INTERNAL)
8 PRIME MINISTER'S OFFICE (PUBLIC) - 897 897
NATIONAL DISASTER MANAGEMENT 9 - 908 908 AUTHORITY
10 BOARD OF INVESTMENT - 806 806
PRIME MINISTER'S INSPECTION 11 - 153 153 COMMISSION
SPECIAL TECHNOLOGY ZONE 12 - 783 783 AUTHORITY
NATIONAL ANTI-MONEY LAUDERING &
13 COUNTER FINANCING OF TERRORISM - 200 200
AUTHORITY
CANNABIS CONTROL & REGULATORY 14 - 200 200 AUTHORITY
15 ESTABLISHMENT DIVISION - 9,815 9,815
FEDERAL PUBLIC SERVICE 16 - 1,377 1,377 COMMISSION
17 NATIONAL SCHOOL OF PUBLIC POLICY - 3,391 3,391
18 CIVIL SERVICES ACADEMY - 2,000 2,000
19 NATIONAL SECURITY DIVISION - 241 241
COUNCIL OF COMMON INTEREST 20 - 113 113 (SECRETARIAT)
SPECIAL INVESTMENT FACILITATION 21 - 340 340 COUNCIL DIVISION (SIFCD)
22 INTELLIGENCE BUREAU DIVISION - 19,121 19,121
Contd…...Page 33
(Rs. in million)
Demand Budget Estimates 2025-26 Ministries / Divisions No. Charged Voted Total
CLIMATE CHANGE AND ENVIROMENTAL 23 - 1,068 1,068 COORDINATION DIVISION
24 COMMERCE DIVISION - 26,949 26,949
25 COMMUNICATIONS DIVISION - 314 314
OTHER EXPENDITURE OF 26 - 34,755 34,755 COMMUNICATIONS DIVISION
27 PAKISTAN POST OFFICE DEPARTMENT 5 24,449 24,454
28 DEFENCE DIVISION - 13,892 13,892
FEDERAL GOVERNMENT EDUCATIONAL
29 INSTITUTIONS IN CANTONMENTS AND - 15,908 15,908
GARRISONS
30 AIRPORTS SECURITY FORCE - 17,375 17,375
31 DEFENCE SERVICES 2,550,000 2,550,000
32 DEFENCE PRODUCTION DIVISION - 1,093 1,093
33 ECONOMIC AFFAIRS DIVISION - 944 944
MISCELLANEOUS EXPENDITURE OF 34 - 19,721 19,721 ECONOMIC AFFAIRS DIVISION
35 POWER DIVISION - 636,904 636,904
36 PETROLEUM DIVISION - 2,169 2,169
37 GEOLOGICAL SURVEY OF PAKISTAN - 1,150 1,150
FEDERAL EDUCATION AND 38 - 37,245 37,245 PROFESSIONAL TRAINING DIVISION
HIGHER EDUCATION COMMISSION 39 - 66,407 66,407 (HEC)
NATIONAL RAHMATUL-LIL-AALAMEEN 40 - 111 111 WA KHATAMUN NABIYYIN AUTHORITY
NATIONAL VOCATIONAL & TECHNICAL 41 - 1,147 1,147 TRAINING COMMISSION (NAVTTC)
NATIONAL HERITAGE AND CULTURE 42 - 2,496 2,496 DIVISION
43 FINANCE DIVISION - 4,822 4,822
OTHER EXPENDITURE OF FINANCE 44 - 8,691 8,691 DIVISION
45 CONTROLLER GENERAL OF ACCOUNTS - 13,812 13,812
Contd…...Page 34
(Rs. in million)
Demand Budget Estimates 2025-26 Ministries / Divisions No. Charged Voted Total
SUPERANNUATION ALLOWANCES AND 46 5,928 1,049,072 1,055,000 PENSIONS
GRANTS SUBSIDIES AND 47 60,000 1,836,345 1,896,345 MISCELLANEOUS EXPENDITURE
48 REVENUE DIVISION - 102 102
49 FEDERAL BOARD OF REVENUE - 83,100 83,100
50 FOREIGN AFFAIRS DIVISION - 4,504 4,504
51 FOREIGN MISSIONS 50 58,031 58,081
52 HOUSING AND WORKS DIVISION - 7,112 7,112
53 HUMAN RIGHTS DIVISION - 1,273 1,273
NATIONAL COMISSION FOR HUMAN 54 - 236 236 RIGHTS
NATIONAL COMMISSION ON THE 55 - 93 93 RIGHTS OF CHILD
NATIONAL COMMISSION ON THE 56 - 119 119 STATUS OF WOMEN
INDUSTRIES AND PRODUCTION 57 - 30,476 30,476 DIVISION
INFORMATION AND BROADCASTING 58 - 5,757 5,757 DIVISION
MISCELLANEOUS EXPENDITURE OF
59 INFORMATION AND BROADCASTING - 14,716 14,716
DIVISION
INFORMATION TECHNOLOGY AND 60 - 19,433 19,433 TELECOMMUNICATION DIVISION
INTERIOR AND NARCOTICS CONTROL 61 - 26,218 26,218 DIVISION
OTHER EXPENDITURE OF INTERIOR 62 - 21,196 21,196 DIVISION
63 ISLAMABAD CAPITAL TERRITORY (ICT) - 21,264 21,264
64 COMBINED CIVIL ARMED FORCES - 274,153 274,153
NATIONAL COUNTER TERRORISM 65 - 1,059 1,059 AUTHORITY
INTER-PROVINCIAL COORDINATION 66 - 2,569 2,569 DIVISION
KASHMIR AFFAIRS, GILGIT-BALTISTAN
67 AND STATES AND FRONTIER REGIONS - 2,453 2,453
DIVISION
Contd…...Page 35
(Rs. in million)
Demand Budget Estimates 2025-26 Ministries / Divisions No. Charged Voted Total
68 LAW AND JUSTICE DIVISION 474 12,117 12,591
69 FEDERAL JUDICIAL ACADEMY - 340 340
70 FEDERAL SHARIAT COURT - 1,059 1,059
71 COUNCIL OF ISLAMIC IDEOLOGY - 257 257
72 NATIONAL ACCOUNTABILITY BUREAU - 7,412 7,412
DISTRICT JUDICIARY, ISLAMABAD 73 - 1,769 1,769 CAPITAL TERRITORY
74 MARITIME AFFAIRS DIVISION - 2,246 2,246
75 NATIONAL ASSEMBLY 6,852 9,438 16,290
76 THE SENATE 6,175 2,880 9,055
NATIONAL FOOD SECURITY AND 77 - 23,068 23,068 RESEARCH DIVISION
PAKISTAN AGRICULTURAL RESEARCH 78 - 6,725 6,725 COUNCIL
NATIONAL HEALTH SERVICES,
79 REGULATIONS AND COORDINATION - 31,753 31,753
DIVISION
OVERSEAS PAKISTANIS AND HUMAN 80 - 4,191 4,191 RESOURCE DEVELOPMENT DIVISION
81 PARLIAMENTARY AFFAIRS DIVISION - 829 829
PLANNING, DEVELOPMENT AND 82 - 9,859 9,859 SPECIAL INITIATIVES DIVISION
POVERTY ALLEVIATION AND SOCIAL 83 - 10,232 10,232 SAFETY DIVISION
BENAZIR INCOME SUPPORT 84 - 722,490 722,490 PROGRAME (BISP)
85 PAKISTAN BAIT- UL -MAL - 14,202 14,202
86 PRIVATIZATION DIVISION - 374 374
87 RAILWAYS DIVISION - 70,458 70,458
RELIGIOUS AFFAIRS AND INTER-FAITH 88 - 2,003 2,003 HARMONY DIVISION
89 SCIENCE AND TECHNOLOGY DIVISION - 15,013 15,013
90 WATER RESOURCES DIVISION - 4,067 4,067
Contd…...Page 36
(Rs. in million)
Demand Budget Estimates 2025-26 Ministries / Divisions No. Charged Voted Total
FEDERAL MISCELLANEOUS
91 INVESTMENTS AND OTHER LOANS AND - 115,082 115,082
ADVANCES
DEVELOPMENT EXPENDITURE OF 92 - 70,250 70,250 CABINET DIVISION
DEVELOPMENT EXPENDITURE OF 93 - 1,105 1,105 BOARD OF INVESTMENT
DEVELOPMENT EXPENDITURE OF
94 SPECIAL TECHNOLOGY ZONES - 138 138
AUTHORITY
DEVELOPMENT EXPENDITURE OF 95 - 495 495 ESTABLISHMENT DIVISION
DEVELOPMENT EXPENDITURE OF 96 - 5,419 5,419 SUPARCO
DEVELOPMENT EXPENDITURE OF 97 - 503 503 SPECIAL
DEVELOPMENT EXP OF CLIMATE
98 CHANGE AND ENV. COORDINATION - 2,784 2,784
DIVISION
DEVELOPMENT EXPENDITURE OF 99 - 50 50 COMMERCE DIVISION
DEVELOPMENT EXPENDITURE 100 - 7,159 7,159 COMMUNICATION DIVISION
DEVELOPMENT EXPENDITURE OF 101 - 11,554 11,554 DEFENCE DIVISION
DEVELOPMENT EXPENDITURE OF 102 - 1,786 1,786 DEFENCE PRODUCTION DIVISION
DEVELOPMENT EXPENDITURE OF 103 - 2,397 2,397 POWER DIVISION
DEVELOPMENT EXPENDITURE OF
104 FEDERAL EDUCATION & PR. TR. - 13,680 13,680
DIVISION
DEVELOPMENT EXPENDITURE OF 105 - 39,488 39,488 HIGHER EDUCATION COMMISSION
DEVELOPMENT EXPENDITURE OF
106 NATIONAL VOCATIONAL & TECHNICAL - 4,900 4,900
TRAINING COMMISSION (NAVTTC)
Contd…...Page 37
(Rs. in million)
Demand Budget Estimates 2025-26 Ministries / Divisions No. Charged Voted Total
DEVELOPMENT EXPENDITURE OF
107 NATIONAL HERITAGE & CULTURE - 1,676 1,676
DIVISION
DEVELOPMENT EXPENDITURE OF 108 - 852 852 FINANCE DIVISION
109 OTHER DEVELOPMENT EXPENDITURE - 251,130 251,130
DEVELOPMENT EXPENDITURE OF 110 - 7,150 7,150 REVENUE DIVISION
DEVELOPMENT EXPENDITURE OF 111 - 23 23 HUMAN RIGHTS DIVISION
DEVELOPMENT EXPENDITURE OF
112 INFORMATION & BROADCASTING - 1,616 1,616
DIVISION
DEVELOPMENT EXPENDITURE
113 INFORMATION TECHNOLOGY & - 16,227 16,227
TELECOMMUNICATION DIVISION
DEVELOPMENT EXPENDITURE OF 114 - 12,908 12,908 INTERIOR DIVISION
DEVELOPMENT EXPENDITURE OF
115 INTERPROVINCIAL COORDINATION - 1,180 1,180
DIVISION
DEVELOPMENT EXP. OF K.A, GB & 116 - 1,800 1,800 SAFRON DIVISION
DEVELOPMENT EXPENDITURE OF LAW 117 - 1,912 1,912 & JUSTICE DIVISION
DEVELOPMENT EXPENDITURE OF
118 NATIONAL FOOD SECURITY AND - 4,254 4,254
RESEARCH DIVISION
DEVELOPMENT EXPENDITURE OF
119 NATIONAL HEALTH SERVICES, - 14,344 14,344
REGULATION AND COORD. DIVISION
DEVELOPMENT EXPENDITURE OF 120 - 2,500 2,500 PARLIAMENTARY AFFAIRS DIVISION
Contd…...Page 38
(Rs. in million)
Demand Budget Estimates 2025-26 Ministries / Divisions No. Charged Voted Total
DEVELOPMENT EXPENDITURE OF
121 PLANNING, DEVELOPMENT AND - 23,270 23,270
SPECIAL INITIATIVES DIVISION
DEVELOPMENT EXPENDITURE OF
122 RELIGIOUS AFFAIRS AND INTER FAITH - 650 650
HAROMONY DIVISION
DEVELOPMENT EXPENDITURE OF 123 - 4,793 4,793 SCIENCE & TECHNOLOGY DIVISION
DEVELOPMENT EXPENDITURE OF 124 - 82,779 82,779 WATER RESOURCES DIVISION
CAPITAL OUTLAY ON DEVELOPMENT 125 - 761 761 OF ATOMIC ENERGY
EXTERNAL DEVELOPMENT LOANS AND
126 ADVANCES OF COMMUNICATION - 54,856 54,856
DIVISION
CAPITAL OUTLAY ON PETROLEUM 127 - 719 719 DIVISION
EXTERNAL DEVELOPMENT LOANS AND 128 - 72,107 72,107 ADVANCES OF POWER DIVISION
CAPITAL OUTLAY ON FEDERAL 129 - 1,490 1,490 INVESTMENTS
DEVELOPMENT LOANS AND ADVANCES 130 - 183,758 183,758 BY THE FEDERAL GOVERNMENT
EXTERNAL DEVELOPMENT LOANS AND
131 ADVANCES BY THE FEDERAL 774,953 2,100 777,053
GOVERNMENT
132 CAPITAL OUTLAY ON CIVIL WORKS - 15,006 15,006
CAPITAL OUTLAY ON INDUSTRIAL 133 - 1,904 1,904 DEVELOPMENT
CAPITAL OUTLAY ON MARITIME 134 - 3,465 3,465 AFFAIRS DIVISION
CAPITAL OUTLAY ON RAILWAY 135 - 22,415 22,415 DIVISION
Contd…...Page 39
(Rs. in million)
Demand Budget Estimates 2025-26 Ministries / Divisions No. Charged Voted Total
EXTERNAL DEVELOPMENT LOANS AND
136 ADVANCES OF WATER RESOURCE - 50,645 50,645
DIVISION
STAFF HOUSEHOLD & ALLOWANCES 934 - 934 OF THE PRESIDENT(PUBLIC)
STAFF HOUSEHOLD & ALLOWANCES 1,760 - 1,760 OF THE PRESIDENT(PERSONAL)
SERVICING OF FOREIGN DEBT 1,009,322 - 1,009,322
FOREIGN LOANS REPAYMENT 5,472,222 - 5,472,222
REPAYMENT OF SHORT TERM 199,810 - 199,810 FOREIGN CREDITS
AUDIT 9,009 - 9,009
SERVICING OF DOMESTIC DEBT 7,197,928 - 7,197,928
REPAYMENT OF DOMESTIC DEBT 14,007,189 - 14,007,189
SUPREME COURT 6,645 - 6,645
ISLAMABAD HIGH COURT 2,170 - 2,170
ELECTION 9,869 - 9,869
FEDERAL OMBUDSMAN SECRETARIAT
FOR PROTECTION AGAINST 235 - 235 HARASSMENT OF WOMEN AT
WORKPLACE
WAFAQI MOHTASIB 1,644 - 1,644
FEDERAL TAX OMBUDSMAN 604 - 604
TOTAL 28,773,778 9,081,523 37,855,301Page 40
(Schedule III)
Statement of Object Classification Wise Expenditure
Rs. In million
Budget Revised Budget
Object Code Description Estimates Estimates Estimates
2024-25 2024-25 2025-26
A01 Total Employees Related Expenses 1,358,788 1,366,258 1,438,843
A011 Pay 221,808 220,885 247,602
A011-1 Pay of Officer 74,470 73,776 81,592
A011-2 Pay of Other Staff 147,339 147,109 166,009
A012 Allowances 1,136,980 1,145,373 1,191,241
A012-1 Regular Allowances 1,098,332 1,102,024 1,147,312
A012-2 Other Allowances (Excluding TA) 38,648 43,350 43,929
A02 Project Pre-investment Analysis 3,251 1,867 2,720
A03 Operating Expenses 1,500,606 1,485,050 1,782,380
A04 Employees Retirement Benefits 1,022,974 1,023,488 1,065,034
A05 Grants, Subsidies & Write off Loans 3,475,111 3,162,517 3,103,344
A06 Transfers 20,764 20,156 16,982
A07 Interest Payment 9,775,005 8,945,339 8,207,255
A08 Loans and Advances 1,141,620 1,034,685 1,238,381
A09 Physical Assets 633,417 642,913 720,174
A10 Principal Repayments of Loans 24,069,508 24,903,372 19,679,231
A11 Investments 91,364 238,506 187,091
A12 Civil Works 329,120 314,094 390,294
A13 Repairs and Maintenance 17,336 18,580 23,573
TOTAL EXPENDITURE 43,438,864 43,156,827 37,855,301Page 41
STATEMENT OF CONTINGENT LIABILITIES
OF THE FEDERAL GOVERNMENT
1. Contingent liabilities of Pakistan are primarily guarantees issued on behalf of
Public Sector Enterprises (PSEs). The sovereign guarantee is normally extended to
improve financial viability of projects or activities undertaken by the government
entities with significant social and economic benefits. It allows public sector
companies to borrow money at lower costs or on more favourable terms and in some
cases allows to fulfil the requirement where sovereign guarantee is aprecondition for
concessional loans from bilateral/multilateral agencies to sub-sovereign borrowers.
2. The volume of new government guarantees issued during a financial year is
limited under Fiscal Responsibility and Debt Limitation Act which stipulates that the
government shall not give guarantees aggregating to an amount exceeding two
percent of the GDP in any financial year including those for rupee lending, rate of
return, outright purchase agreements and other claims and commitments provided the
renewal of existing guarantees shall be considered as issuing a new guarantee.
3. During Jul-Mar FY25, the Government issued fresh/rollover guarantees
aggregating to PKR 405 billion or 0.35 percent of estimated GDP. The outstanding
stock of guarantees was PKR 3,448 billion at end-March 2025. Presently, this
amount excludes the guarantees issued for commodity operations, due to their self
liquiditing nature, which stood at PKR 1075 billion as on end March-2025. These
guarantees are issued against commodity financing operations undertaken by Trading
Corporation of Pakistan (TCP), Pakistan Agriculture Storage & Services Corporation
(PASSCO), and Provincial Governments.Page 42
Table-1: Summary of Outstanding Government Guarantees
(Rs in billion)
Outstanding Guarantees Total Guarantees
Domestic 1,463 1,634
External 1,985 1,998
Total 3,448 3,632
Memo:
External (US$ in million) 7,086 7,131
Exchange Rate (Pak Rupee/US Dollar) 280 280
4. Sector-Wise, Entity Wise and interest rate wise share of the guarantees at
end March 2024are as follows:
Table 2: Outstanding Position of GoP Guarantees
Rs in billion % Age
Sector Wise Breakup
Total Outstanding Stock 3,448 100%
- Power Sector 2,405 70%
- Aviation 269 8%
- Financial 145 4%
- Oil & Gas 130 4%
- Others 499 14%
Entity Wise Breakup
Total Outstanding Stock 3,448 100%
- PAEC 1,465 42%
- PHL 683 20%
- PIAHCL 269 8%
- WAPDA 114 3%
- Others 917 27%Page 43
Table 2: Outstanding Position of GoP Guarantees
Rs in billion % Age
Interest Rate Type
Total Outstanding Stock 3,448 100%
- Floating Rate 1,482 43%
- Fixed Rate 1,966 57%
Note: The original maturities of major portion of Guaranteed Debt Stock were 5 years and
above
5. The estimates of guarantees to be issued from April 2025 till June
2026 are as follows:
Table 3: Estimated Guarantees Issuance and Position (Q4 FY 25 and FY 26)
(Rs in billion)
A Opening Guaranteed Debt Position (31-03-2025) 3,632
B New Guarantees to be Issued (Q4 FY 24 & FY25) 536
- REKO DIQ 203
- C-5 183
- PPP 90
- Exim Bank 10
- Misc/Contingencies 50
C Estimated Repayments against Existing Guaranteed Loans 218
D=B-C Net Issuance of Guarantees (Q4 FY 25 & FY26) 318
A+D Estimated Closing Guaranteed Debt Position (30-06-2026) 3,950
Note
(i) Expected external guarantees are converted into PKR at exchange rate of 290
(ii) The estimates are developed based on requests received from different PSEs and
issuing wings during the ongoing Fiscal Year. This amount exlcudes Roll-overs.
(iii) The guarantees of which LoCs have already been issued before March 2025 are
incorporated in Opening Guaranteed Debt Position as at End March 2025.Page 44
Statement of Fiscal Risks 2025-28 Statement of Fiscal Risks for 2025-28 provides a comprehensive analysis of the uncertainties that could affect Pakistan’s fiscal outlook beyond the official Medium- Term Budgetary Framework projections. It categorizes these risks into macroeconomic, revenue, debt, State-Owned Enterprises (SOEs), climate change, natural disasters, and other contingent liabilities, quantifying their possible impacts on the fiscal deficit and suggesting mitigation measures to manage these risks effectively. Macroeconomic Risks: Macroeconomic risks primarily arise from slower-than-expected GDP growth, inflation shocks, and exchange rate volatility. A one percentage point slowdown in GDP growth could reduce government revenues due to lower tax collections and increase expenditures on automatic stabilizers such as social safety net programs. This combined effect could widen the fiscal deficit by roughly 0.13 percent of GDP in FY 2025-26. Inflation spikes and currency depreciation may further strain public finances, though these effects are more challenging to quantify precisely. Revenue Risks: Revenue collection remains vulnerable to lower tax buoyancy, slower economic growth, and underperformance in key revenue sources. Should tax revenues grow at only half the anticipated rate, the fiscal deficit could increase by approximately 0.4 percent of GDP. Additional revenue risks include a potential 30 percent decline in State Bank profits transferred to the government, which alone could widen the deficit by 0.32 percent of GDP, and a 20 percent shortfall in petroleum levy collections, increasing the deficit by about 0.2 percent. These factors indicate the government’s reliance on volatile revenue streams and the importance of improving tax administration and compliance. Debt-Related Risks: Debt servicing costs represent a significant fiscal vulnerability. A 2-percentage point increase in domestic interest rates and a 1 percentage point rise in external interest rates could lead to higher interest payments, raising the fiscal deficit by an estimated
Page 45
0.42 percent of GDP. Additionally, refinancing risks from maturing debt could add about 0.04 percent to the deficit. Exchange rate depreciation could increase the burden of external debt servicing, further complicating debt sustainability. SOE-Related Risks: State-Owned Enterprises pose fiscal risks through potential shortfalls in dividend payments and increased government support. A decline in SOE dividends by 6.1 percent relative to projections could add around 0.02 percent of GDP to the deficit. Increased government financial support to SOEs, amounting to 1.5 percent of GDP, could exacerbate the fiscal gap by a similar margin of 0.4 percent. Additionally, risks linked to energy sector reforms and the transition to clean energy, such as restructuring costs, may increase the fiscal deficit by an estimated 0.15 percent, reflecting the financial challenges in this sector. Climate-Related Risks: The fiscal impact of climate change varies across scenarios. Under the moderate RCP2.6 scenario, increased government spending on green infrastructure and climate adaptation could raise the fiscal deficit by 0.28 percent of GDP in the short term. In contrast, the more severe RCP8.5 scenario anticipates lower short-term fiscal impacts but greater long-term costs due to increased frequency and severity of climate-related disasters. These projections highlight the growing fiscal burden of climate adaptation and mitigation policies. Natural Disaster Risks: Natural disasters represent the largest fiscal risk identified in the statement. Without dedicated disaster risk financing mechanisms, an average disaster event could increase the fiscal deficit by as much as 1.03 percent of GDP. However, with effective disaster risk financing tools such as catastrophe bonds or insurance funds, this impact could be reduced to approximately 0.44 percent of GDP. This finding emphasizes the critical need for enhanced disaster preparedness and financing frameworks to shield public finances. Other Fiscal Risks: Additional contingent fiscal risks include the invocation of government guarantees linked to commodities, which could increase the fiscal deficit by around 0.11 percent
Page 46
of GDP if 25 percent of guarantees are called. Rising international oil prices, specifically a $20 per barrel increase, are projected to add 0.37 percent of GDP to the deficit due to higher subsidy costs and import bills. Furthermore, a 10 percent growth in tax expenditures, reflecting expanding tax exemptions and incentives, could increase the fiscal gap by about 0.16 percent, pointing to the need for rationalizing tax expenditures. Risk Assessment and Combined Effects: The statement emphasizes that natural disasters, interest rate hikes, and revenue shortfalls constitute the largest fiscal risks. It also highlights the potential for multiple simultaneous shocks to significantly magnify fiscal pressures, underscoring the importance of integrated risk management and contingency planning across all sectors to maintain fiscal stability. Mitigation Strategies: To counter these risks, the government intends to enhance revenue mobilization by broadening the tax base and improving compliance. Public expenditure will be managed more efficiently to protect key social and development programs. Debt management policies will focus on extending maturities and increasing fixed-rate borrowing to reduce vulnerability to interest rate shocks. SOE reforms aim to improve financial discipline and reduce contingent liabilities. The government plans to scale up investments in green infrastructure and climate resilience, alongside establishing disaster risk financing instruments like catastrophe bonds and disaster funds. Finally, tighter oversight of government guarantees and more targeted subsidy programs will help mitigate other contingent fiscal exposures. Conclusion: This Statement of Fiscal Risks equips policymakers and stakeholders with a detailed and quantified understanding of Pakistan’s fiscal vulnerabilities over the medium term. It acknowledges the inherent uncertainties in economic conditions and external shocks while outlining proactive, cross-sectoral measures designed to strengthen fiscal resilience, improve transparency, and safeguard macro-fiscal stability amid evolving challenges
Page 47
STATEMENT OF ESTIMATED TAX EXPENDITURE
Section 8 of the Public Finance Management Act 2019 provides that the
Federal Government shall in respect of every financial year cause to be laid before
the National Assembly, Finance Bill consistent with Article 73 of the Constitution
including a statement of estimated tax expenditure of the Federal Government.
2. Tax Expenditure Report 2025 is being presented before the
Parliament providing the details of tax expenditure in FY 2023-24 which involves
tax expenditure of Sales Tax of Rs. 1,237.107 billion,1 a tax expenditure of Income
Tax at Rs. 545.229 billion and tax expenditure of Custom duty of Rs. 652.390
billion. This amounts to a tax expenditure of Rs. 2,434.726 billion which is 2.32
percent of GDP compared to 4.6 percent of GDP in the FY 2022-23.
(Rashid Mahmood)
Chairman FBR/ Secretary
Revenue Division
10th June, 2025
1In FY 2022-23 figure of Sales Tax Expenditure included sales tax exemption on POL
products on which Petroleum Development Levy (PDL) is being charged. In presence of
PDL, sales tax cannot be levied. Hence exemption from sales tax is not tax expenditure as
consumers are, in any case, paying PDL.
Rs. In Billion
FY 2023-24 2022-23
Gross Sales Tax Expenditure 3,032.871 2,858.722
Less Exemption on POL Products (1,795.764) (1,338.738)
Net Sales Tax Expenditure 1,237.107 1,519.984Page 48
Medium-Term Budgetary Statement
(2025-26 to 2027-28)
Federal Government includes Medium-Term Budgetary Statement,
consistent with the principles of sound fiscal and debt management, in the Annual
Budget Statement to be laid before the National Assembly each year as per
requirement under Section 5 of the Fiscal Responsibility & Debt Limitation Act,
2005.
2. Pakistan’s economy witnessed a moderate recovery in FY2024 which
laid a sound foundation for further strengthening growth prospects in FY2026 and
over the medium term. The Government has been able to stabilize the economy
through various short-term policy measures and initiate the long-term sustainable
growth agenda.
3. The effective consolidation efforts have reinforced the fiscal discipline
during Jul-Mar FY2024-25, with revenue growth outpacing expenditures. The
growth trend in tax collection is indicative of improving economic conditions,
gradual recovery in business activities, and effective enforcement measures.
Consequently, the revenue landscape presents a promising outlook. Prudent
expenditure management has helped in containing the deficit. Notably, the sharp
increase in markup expenditures observed over the last three years has eased in the
current fiscal year, due to a reduction in the policy rate, thus providing relief to fiscal
account. Similarly, the Government's persistent efforts to curtail non-markup
expenditures through austerity and reform measures thus facilitate a continuous
improvement in primary surplus.Page 49
4. Resource mobilization and increasing revenues to an optimum level over medium-term is a critical challenge to meet expenditures. Government is focusing all its efforts to optimize tax collection through robust measures such as revamping of FBR, supporting digitization and IT base solutions, removing tax distortions and implementing tax regulations effectively. Similarly, realizing the importance of non- tax revenues (NTR), the Government is exploring all avenues to increase inflows. Going forward, Government is committed to maintain this growth. 5. On the expenditure side, the Government is ensuring the support to social sector development through health, education, youth and gender sensitive allocations. For social inclusion and pro-poor interventions, spending on BISP, Pakistan Bait-ul-Mal and Utility Stores Corporations have been protected. Funding for social sector such as health, education and other SDGs including climate change have also been ensured. In order to support industrial and agricultural sectors, funds have been made available. At the same time, austerity measures remain in place for curtailing of non-essential spending. Stable financial health and fiscal discipline over medium-term will ensure the Government's to create a balance between providing relief to the common man and meet other essential expenditures.
Page 50
Climate Budget Statement The challenge of climate change posing socioeconomic risks to Pakistan demands urgent attention. The federal government is cognizant of macro-fiscal implication of climate change and is working towards economic diversification to strengthen fiscal resilience by focusing on greener economy through introducing climate resilience infrastructure and new industries. Federal government has adopted a climate budget as a governance system to mainstream climate considerations into policy decision making. Green budgeting will enable the government in prioritizing climate by integrating it into the budgeting process so as to ensure implementation, monitoring, evaluation and reporting across line ministries and departments. Climate Budget Tagging (CBT) tool has been used to tag climate-sensitive budgetary and expenditure data based on the National Climate Change Policy. Through a consultative process involving all stakeholders, more than of 5,000 cost centers under three major classifications (adaptation, mitigation, and other supporting areas) and forty minor sub-classifications have been tagged successfully in SAP system for accounting and reporting purpose. This will enable the government in monitoring and tracking climate related spending and reports can be made available on regular basis. Climate budget tagging is being extended to grants and subsidies for FY2025- 26 and subsidies have been mapped. Ministry of Finance has taken a step further by developing methodology to capture green component in revenues. For FY2025-26, 35% NTR and 9.4% gross revenues have been identified as green components. For FY2025-26, the government has allocated funds to tackle climate change as 6.9% of the current budget and 8.2% of the development budget. In grants, a share of 0.2% and almost 50% of subsidies are climate responsive. All of these interventions will allow the federal government to make targeted allocations to respond to climate change risks in future.
Page 51
Gender budget Statement Article 25 of the Constitution of Pakistan, 1973 provides that there will be no gender discrimination, while Article 35 directs the Sate to ensure full participation of women in all spheres of national life. Gender inequality is a cause of concern at domestic and international data and indices suggest a gap between men and women in terms of education, health, employment and economic opportunities. Pakistan’s economic potential can only be fully realized once this gap closes. As the Government works to reduce gender inequality and ensure provision of equal rights to all citizens, one major impediment is lack of gender-disaggregated data. As a first step, the government is attempting to identify gender disaggregated data on public expenditure. The federal government has segregated gender sensitive budgets and expenditures of all ministries, divisions and departments, thereby allowing policymakers to have better insight on gender responsive policies and strategies. Public expenditure of more than 5,000 cost centers of the federal budget has been segregated under six major gender classifications (equality & quality of education, health & well-being, governance & data systems, employment & economic opportunity, safety & security, and agency, political participation & meaningful engagement). This will assist in effective and efficient spending to tackle gender inequality. This budget tagging exercise also helps in monitoring and tracking of cross cutting SDGs on health, education, nutrition etc. For FY2025-26, the government has allocated 9.2% of the current budget and 6.9% of the development budget to gender sensitive areas.
Page 52
Disaster Budget Statement Disaster risk is a combination of extreme natural events and vulnerability. Due to its diverse geography and climate change, Pakistan is prone to natural disaster. According to the World Risk Report 2023, Pakistan has been ranked 11th highest disaster risk prone worldwide. Cognizant of this, Government of Pakistan has passed laws, instituted disaster management authorities at the federal and provincial levels, and established disaster funds to manage and mitigate such risks. However, data on public expenditure on disaster preparedness, recovery, and rehabilitation was not available in past. Each year, the Government budgets and spends millions of rupees to deal with disasters. Tagging and tracking this expenditure is necessary for evidence-based policy-making and accountability. In 2024, the federal government decided to tag more than 5,000 cost centers on four major disaster classifications (preparedness, response, recovery & rehabilitation, and reconstruction) through a consultative process. All ministries and divisions of the Federal Government have participated in the tagging of their respective cost centers, increasing this exercise’s outreach, transparency, and ownership. This tagging and tracking of budget and expenditure on disaster sensitive areas will assist the Federal Government in effectively mitigating risk and managing disasters. For FY 2025-26, the government has allocated 1% of federal budget for disaster.
Page 53
Government of Pakistan
Finance Division
STATEMENT OF RESPONSIBILITY
Stated that all policy decisions with material economic or fiscal implications
that the Federal Government has made before 10th June 2025, the day on which the
contents of the economic policy statements were finalized and all other
circumstances with material economic or fiscal implications of which I was aware
before that day, have been communicated to the Secretary of Finance in terms of
Section 10(1)(a) of Fiscal Responsibility and Debt Limitation Act, 2005.
The statement to the best of my knowledge provides for: -
a. The integrity of the disclosures contained in the economic policy
statement;
the consistency with requirements of the Act of the information b.
contained in the economic policy statements; and
the omission from the economic policy statement of any decision or c.
circumstance specified in sub-section (3) of section 8 of the Act.
(Muhammad Aurangzeb)
Minister for Finance and RevenuePage 54
Government of Pakistan
Finance Division
STATEMENT OF RESPONSIBILITY
Stated that the Finance Division, interms of Section 10(1)(b) of Fiscal
Responsibility and Debt Limitation Act, 2005, has supplied to the Minister for Finance
and Revenue, using its best professional judgment on the basis of economic and fiscal
information available to it before 10th June 2025, the day on which the contents of the
economic policy statements were finalized, an economic and fiscal statement
incorporating the fiscal and economic implications of those decisions and
circumstances, but any decisions or circumstances that the Minister for Finance and
Revenue has determined under Sub-section (3) of Section 8 of the Fiscal Responsibility
and Debt Limitation Act 2005 have not been incorporated in the statement.
IMDAD ULLAH BOSAL
Secretary to the Government of Pakistan
Finance Division,
Islamabad, the10th June, 2025