A special meeting of the federal cabinet has been convened today in Islamabad to approve key budget proposals for the fiscal year 2026-27, with expectations of decisions on salary increases for government employees and finalisation of budget documents ahead of their presentation in Parliament.
Prime Minister Shehbaz Sharif will chair the meeting at Parliament House at 2pm, where the federal cabinet is set to review and approve the budget strategy and related financial proposals. The meeting is considered crucial as it will finalise the federal budget before its formal presentation in the National Assembly.
According to official sources, one of the major agenda items includes a proposed increase in salaries and pensions of government employees. A raise of up to 10 per cent is reportedly under consideration, though the final decision will be made during the cabinet session.
Minister for Parliamentary Affairs Tariq Fazal Chaudhry confirmed that the federal budget will be presented in the National Assembly at 3pm, followed by its submission in the Senate at 5pm. He added that Finance Minister Muhammad Aurangzeb will present the budget speech.
The government and allied political parties are expected to fully participate in the budget session, while the opposition has been urged to play a constructive parliamentary role.
Preliminary reports suggest the total size of the federal budget could be around Rs18 trillion. Tax relief for salaried individuals is also expected, including possible reductions in income tax rates and super tax adjustments. However, corporate tax rates are likely to remain unchanged.
On the other hand, some indirect taxation measures are expected to be revised. Duties on cosmetics and personal care products such as shampoos and soaps may be reduced, potentially lowering prices. Meanwhile, taxes on electric and hybrid vehicles could be increased as part of fiscal adjustment measures.
Additionally, a climate levy on petroleum products is proposed to be increased from Rs2.5 to Rs5 per litre, reflecting the government’s broader revenue and environmental policy priorities.