Under a USD 7bn IMF programme, Pakistan passed a Rs 18.77 trillion FY2026-27 budget that balances fiscal consolidation with development spending. SOE reform, roads, dams and water infrastructure, and a USD 1bn AI investment plan to 2030 are headline priorities.
Government · leader
President Asif Ali Zardari / Prime Minister Shehbaz Sharif
Key national agenda
- IMF programme compliance, revenue mobilisation and deficit control
- Rs 1 trillion federal PSDP for transport, energy and water
- AI and digital transformation (USD 1bn by 2030, AI training for 1m non-IT workers)
- SOE governance reform and debt management
- CPEC 2.0 and expansion of hydro, solar and wind power
- Border security and counter-terrorism
Government programmes
FY2026-27 federal budgetRs 18.77 trillion (approx. USD 67.5bn)
4% growth target, 8.2% inflation assumption, defence up about 18%
National development outlay (PSDP etc.)Rs 3.675 trillion
Federal PSDP Rs 1tr, provincial ADPs Rs 2.224tr, corporations Rs 451bn; CPEC 2.0 is the only new project
Transport infrastructureRs 365bn+
N-25 highway Rs 100bn, M-6 Sukkur-Hyderabad Rs 30bn, ML-1 railway financed by ADB
Energy and water infrastructureEnergy Rs 116.2bn + water Rs 103.1bn
Dasu, Tarbela and Diamer-Bhasha dams, nine solar/wind projects, Karachi K-IV water Rs 22bn
AI investment planUSD 1bn
1,000 AI PhD scholarships and AI training for 1m non-IT workers (announced Feb 2026)
Daanish IT Park (formerly Islamabad IT Park)
Built with Korean government and Korea Eximbank support; opened 9 Oct 2026 with the PM present to grow IT talent and exports
Business opportunities
AI automation for tax document processing and taxpayer helpdesks
IMF revenue targets are pressing and the Finance Division is seeking outside tax advice.
Finance Division, Federal Board of Revenue (FBR)
SOE performance management and management diagnostics
The SOE policy was amended in Oct 2026 and biannual performance reporting is now routine.
Finance Division Central Monitoring Unit, federal SOEs
Practical AI courses for civil servants and IT workers
The government pledged AI training for 1m non-IT workers and a Korean-funded IT park just opened.
Ministry of IT, Daanish IT Park tenants, universities
Market-entry support for Korean consumer goods and SMEs
Korea-Pakistan CEPA talks are under way and KOTRA is pushing trade and investment.
Korean SMEs, Pakistani importers and distributors
Korean support schemes
- Daanish IT Park construction support · Export-Import Bank of Korea (EDCF) / Korean government — The Islamabad IT park was built with Korean financing and opened on 9 Oct 2026.
- KOICA and KOPIA development cooperation · KOICA / KOPIA — Ongoing cooperation in IT, health, agriculture and food security.
- KOTRA Karachi industrial collaboration event · KOTRA — Hosted a Korea-Pakistan industrial collaboration event in Karachi (Apr 2025) on autos, medical devices and IT.
Official notices
Finance Division, Government of Pakistan
- 2026-10-05 FY2026 SOE biannual report published
- 2026-10-02 Amendment to the SOE Ownership and Management Policy 2023
- 2026-09-30 RFP for tax advisory services; September economic update and FY2026 debt review
- 2026-09-29 FY2027 annual borrowing plan and local-currency bond market strategy
Disaster · conflict · epidemic
High 2026-10-30
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Border clashes and airstrikes with the Afghan Taliban continue (late Sep-Oct) · Surge in militant attacks: 1,415 killed in Q3 (CRSS)
Chikungunya cluster in Nowshera, Khyber Pakhtunkhwa (Sep)
