Pakistan’s fiscal roadmap for 2026-27 prioritises environmental sustainability, climate readiness, and relief for salaried taxpayers, alongside an official forecast of 5.1 percent economic growth nationally.
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According to the Finance Ministry, inflation during the next fiscal year is projected at 6.5 percent as budget planning begins under revised macroeconomic assumptions framework.
The ministry said upcoming budget proposals will rely on green taxation, climate-linked subsidies, and expanded non-tax revenues to support sustainable development objectives across government policy.
All federal ministries have been instructed to identify environmental and climate-related expenditures, with separate tagging of relevant income and spending made compulsory under the framework.
Officials said a strengthened disaster budgeting system will be introduced to improve preparedness and response capacity against natural calamities nationwide during future climate-related emergencies periods.
Non-tax revenue streams will be reviewed for environmental impact, while charges on polluting activities will be aligned directly with climate objectives set by federal authorities.
Green revenue measures are intended to address challenges in energy, transportation, and pollution management under the government’s broader sustainability agenda outlined for the fiscal year.
Budget subsidies will be classified across adaptation, mitigation, agriculture insurance, climate-resilient infrastructure, clean energy, and electric vehicles, with transparency prioritised to achieve environmental performance targets.
