FY27 budget may offer limited relief

Pakistan's upcoming federal budget for FY27 is shaping up to be less about headline?grabbing relief measures and more about reinforcing a commitment to economic stabilisation, despite mounting political, social and economic pressures. After three years of adjustments under the International Monetary Fund (IMF) programme, the government now faces the challenge of balancing fiscal discipline with demands for tax relief, growth support and investor confidence. Research previews by leading brokerage houses Topline Research and JS Global Capital indicate that the budget is likely to be viewed less through the lens of populist measures or dramatic policy shifts, and more as a reinforcement of fiscal discipline and policy continuity for investors and lenders. Both reports expect continued fiscal consolidation with a fourth consecutive primary surplus in FY27, but sustaining it will require strong revenue mobilisation amid a fragile recovery.