ISLAMABAD: The upcoming Pakistan Budget 2026-27 is expected to introduce limited relief for the salaried class while increasing electricity bills and ending multiple tax exemptions, as the government aligns its policies with the requirements of the International Monetary Fund. The federal budget, scheduled to be presented in the first week of June, aims to ensure fiscal discipline and secure continued financial assistance.
According to early policy discussions, the government is considering targeted tax relief for salaried individuals, but any final decision will depend on IMF approval. A phased reduction in super tax is also under review, though immediate relief appears unlikely due to revenue constraints and strict economic conditions.
To broaden the tax base, authorities are planning to eliminate several income tax and sales tax exemptions across various sectors. No new tax concessions are expected, including for businesses operating in special economic zones. In fact, existing exemptions for these zones may also be withdrawn as part of efforts to increase tax collection and reduce fiscal deficits.
The government is also likely to restrict the domestic sale of goods produced in export processing zones and limit the establishment of new economic zones. These measures are aimed at improving export performance and ensuring compliance with international financial commitments.
A major concern for consumers is the expected increase in electricity and gas tariffs. Under IMF conditions, automatic and timely tariff adjustments will be implemented, which could result in frequent hikes in utility bills. This move is intended to reduce circular debt and stabilize the energy sector.
On the social welfare front, the government has proposed an increase in payments under the Benazir Income Support Programme. The quarterly stipend may rise from Rs. 14,500 to Rs. 19,500, subject to fiscal space in the final budget.
Additionally, the Federal Board of Revenue is set to introduce a centralized audit system to enhance compliance and boost revenue collection. Plans are also underway to establish a Pakistan Regulatory Registry by 2027 and gradually ease foreign exchange restrictions to support business growth.
