The federal government will unveil the 2026-27 budget in the first week of June, with limited relief for the salaried class, the end of tax exemptions, and more frequent increases in electricity bills to fulfill the demands of the International Monetary Fund (IMF).
The upcoming budget will strictly follow IMF guidelines to maintain fiscal discipline, secure timely financial support, and stabilize the country’s fragile economy.
The government is evaluating targeted tax relief for the salaried class and a phased reduction in the super tax, but any decision on these will depend on the IMF now.
The government plans to eliminate multiple income tax and sales tax exemptions across sectors to increase tax revenue.
No new tax concessions will likely be granted, including for special economic zones. Existing exemptions for these zones are also expected to be withdrawn.
The government might prohibit the sale of goods produced in export processing zones within the domestic market. At the same time, the establishment of new economic zones will likely be restricted.
Under IMF commitments, automatic and timely adjustments in electricity and gas tariffs will become mandatory.
Meanwhile, the government has proposed raising stipends under the Benazir Income Support Program (BISP). The quarterly payment is expected to increase from Rs. 14,500 to Rs. 19,500 if the budget allows it.
The Federal Board of Revenue (FBR) will introduce a centralized and strengthened audit system to improve compliance and increase tax collection.
There’s a plan to establish a Pakistan Regulatory Registry by 2027 to simplify business regulations. The government also intends to progressively relax foreign exchange restrictions.