Pakistan is due to present a federal budget of more than Rs17 trillion for fiscal year 2026-27 on Friday as the government pursues higher revenue and lower spending while seeking to protect lower-income households.

The budget is expected to include measures that increase the burden on middle-income households and registered businesses as part of efforts to strengthen public finances under external financing constraints and higher energy costs.

Official data cited in the budget context showed average CPI inflation at 6.7% in the July-May period, with authorities reporting that price stability was broadly maintained despite pressure on energy prices linked to the Gulf conflict.

The budget announcement is being closely watched for its implications for fiscal consolidation, domestic demand, and sectors affected by taxation and energy-related costs.