ISLAMABAD: Prime Minister Shehbaz Sharif has constituted a seven-member committee to oversee preparations for the federal budget 2026–27, official sources said on Monday.
The committee includes key federal ministers from finance, economic affairs, and planning and development divisions, along with the federal law minister and the chief technical adviser.
An additional secretary from the Ministry of Finance has also been included in the comttee.
According to details, the committee has been tasked with conducting a comprehensive review of major budgetary matters and submitting its recommendations directly to the prime minister.
The committee will assess financial requirements of various ministries, including commerce, power, privatisation and other government departments.
Sources said that determining the Public Sector Development Programme (PSDP) for the fiscal year 2026–27 is also part of the committee’s terms of reference.
The committee will also review financial obligations and international cases related to the Power Division.
Revenue-generating ministries have been directed to allocate a portion of their earnings towards development expenditures.
The agenda also includes reviewing funding from the Climate Support Levy for green initiative startups, as well as examining the implementation of cabinet decisions on rightsizing and reducing government expenditures.
More read, Federal Cabinet Approves Budget 2025–26
Earlier, the federal cabinet had approved the budget 2025-26 proposals, including a 6% increase in salaries and a 7% increase in pensions.
According to sources, the federal cabinet has approved the Finance Bill, and BOL News has received a copy of the budget documents.
The federal cabinet approved a 6% salary hike and a 7% pension increase. The total volume of the budget for the current fiscal year will be Rs. 17,573 billion.
Key Highlights of the Federal Budget 2025–26:
Interest Payments on Loans: Rs. 8,207 billion allocated.
Defense Budget: Proposal to allocate Rs. 2,550 billion.
Government Operational Expenses: Proposal to allocate Rs. 971 billion.
Pension Payments: Rs. 1,055 billion proposed.
Subsidies: Rs. 1,186 billion proposed.
Grants: Rs. 1,928 billion proposed.
Development Budget: Rs. 1,000 billion allocated.b
