ISLAMABAD: The federal government has begun finalizing preparations for the upcoming budget 2026–27, with Finance and Planning officials indicating possible tax relief measures, especially for salaried individuals.
Federal Minister for Planning Ahsan Iqbal, in a TV interview, said that proposals are under consideration to reduce tax rates in order to provide relief to the public and ease the financial burden on the salaried class.
He stated that Prime Minister Shehbaz Sharif is fully aware of the increasing pressure on salaried individuals under the current tax structure. The government is therefore engaged in discussions with the International Monetary Fund (IMF) to explore possible reductions in tax rates.
According to the minister, high taxation is negatively affecting economic activity, and the upcoming budget will focus on improving the business environment and encouraging investment.
He further added that special attention will be given to agriculture and the technology sector in the new budget, along with initiatives to boost IT exports and provide incentives to exporters.
Ahsan Iqbal also revealed that various ministries have requested nearly Rs. 3 trillion for development projects, while the development budget for the next fiscal year is expected to be limited to around Rs. 1,125 billion. He noted that due to limited resources, priorities for development schemes will need to be restructured.
He added that the IMF has also recommended that provincial-type projects should be financed through provincial development budgets.
