Pakistan is preparing to present its federal budget for the 2026–27 fiscal year in the first week of June, as key economic decisions gradually take shape. The government plans to design the budget framework in line with conditions set by the International Monetary Fund while also attempting to provide limited financial relief to citizens.
Officials said the upcoming budget will follow the guidelines of the ongoing IMF programme to maintain fiscal discipline and meet commitments linked to the country’s financial assistance agreement. At the same time, policymakers aim to strike a balance between economic reforms and measures that reduce financial pressure on the public.
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One of the major proposals under consideration is relief for the salaried class through adjustments in taxation policies. Authorities are also discussing a gradual reduction in the super tax; however, any final decision will require consultations and approval from the IMF to ensure compliance with programme targets.
Meanwhile, the government plans to implement wide-ranging tax reforms by eliminating income tax and sales tax exemptions across several sectors. Officials have indicated that no new tax exemptions will be introduced, including for special economic zones, while previously granted exemptions for such zones may also be withdrawn.
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Furthermore, the budget framework may include restrictions on selling products manufactured in export zones within the domestic market and limitations on the creation of new economic zones. In addition, the government is expected to enforce regular adjustments in electricity and gas tariffs as part of the agreed reform programme.
Authorities also plan to increase stipends under the Benazir Income Support Programme, raising the amount from Rs14,500 to Rs19,500 to support vulnerable households. Meanwhile, the Federal Board of Revenue will strengthen its audit system and introduce structural reforms, while a new Pakistan Regulatory Registry is expected to be established by 2027 to improve regulatory oversight.