KARACHI: The federal government is expected to present the 2026–27 budget in the first week of June, and early signs suggest that relief for the salaried class will be quite limited. The plan also includes ending several tax exemptions and introducing more frequent increases in electricity bills, mainly to meet the requirements set by the International Monetary Fund (IMF).
According to reports, the upcoming budget will closely follow IMF guidelines to ensure fiscal discipline, secure financial support on time, and help stabilize Pakistan’s already fragile economy.
There is some discussion within the government about providing targeted tax relief to salaried individuals and gradually reducing the super tax. However, any final decision on these measures will depend on approval from the IMF.
At the same time, the government is planning to remove several income tax and sales tax exemptions across different sectors in an effort to increase overall tax revenue. It is also unlikely that any new tax concessions will be introduced, including those for special economic zones. In fact, existing exemptions for these zones may also be withdrawn.
Another proposal under consideration is to restrict the sale of goods produced in export processing zones within the local market. Additionally, the creation of new economic zones is expected to be limited.
As part of IMF commitments, electricity and gas tariffs will be adjusted automatically and on time, which means consumers could see more frequent changes in their utility bills.
On the relief side, the government has proposed increasing stipends under the Benazir Income Support Programme (BISP). The quarterly payment may rise from Rs. 14,500 to Rs. 19,500, depending on budget approval.
To improve tax collection, the Federal Board of Revenue (FBR) is planning to introduce a more centralized and stronger audit system aimed at increasing compliance.
Looking ahead, there is also a proposal to set up a Pakistan Regulatory Registry by 2027 to make business regulations simpler. Alongside this, the government intends to gradually ease foreign exchange restrictions to support economic activity.