Pakistan’s federal budget for fiscal year 2027 prioritizes enhanced tax enforcement and revenue collection rather than introducing significant new taxes. The government aims to increase the tax-to-GDP ratio through stricter measures targeting tax evasion and broadening the tax base. Key strategies include leveraging technology, data analysis, and improved monitoring of economic activity. The budget proposes a modest increase in overall spending, with a significant portion allocated to debt servicing and defense. While no major new taxes are proposed, existing tax rates will largely remain unchanged. Officials emphasize the focus on improving compliance and plugging loopholes to achieve revenue targets. The government projects a fiscal deficit of 5.9% of GDP, aiming for gradual reduction through improved revenue mobilization and expenditure management.