Pakistan Budget for FY 2026-27

Less than a week before the next budget, the Economic Coordination Committee (ECC) of the cabinet on Friday approved more than Rs40 billion in supplementary grants and a Rs100bn sovereign-guarantee-backed financing facility for the Pakistan State Oil (PSO), which is facing over Rs900bn in receivables from other state-owned enterprises, raising concerns about smooth oil supplies.

And despite financial constraints forcing development cuts in the name of IMF restrictions, the ECC meeting, presided over by Finance Minister Muhammad Aurangzeb, also allowed Rs10bn additional funds for parliamentarians’ development schemes and expanded the scope of special honoraria running up to six-month additional salaries to more ministries and departments involved in federal budget preparations.

Read more: https://www.dawn.com/news/2005583

The last paragraph - buying loyalty
 

Government proposes Rs187.2b social outlay​

Proposes social sector allocation has been increased to Rs187 billion from the current fiscal year's Rs147 billion

Our Correspondent
June 07, 2026

tribune


ISLAMABAD: The government has proposed a substantial increase in social sector spending in the upcoming fiscal year, earmarking Rs187.2 billion to support poverty alleviation and sustainable development initiatives under the Sustainable Development Goals (SDGs) framework.

According to budget proposals, Rs70 billion has been allocated for the SDGs Achievement Programme aimed at improving the welfare of poor and marginalised communities across the country.

The proposed social sector allocation has been increased to Rs187 billion from the current fiscal year's Rs147 billion.

A total of Rs78.5 billion has been proposed for the education sector and the Higher Education Commission (HEC). To support underprivileged students nationwide, Rs3 billion has been earmarked for the Pakistan Education Endowment Fund to provide educational scholarships.
 

IMF programme limits tax relief​


Rate cuts for 550,000 middle-income earners as IMF sets ceiling on budget

Shahbaz Rana
June 07, 2026

the government wants to accelerate economic growth to lower rising poverty and unemployment but the imf was of the view that pakistan has not yet reached a stage where it can afford sustainably higher economic growth photo reuters


The government wants to accelerate economic growth to lower rising poverty and unemployment, but the IMF was of the view that Pakistan has not yet reached a stage where it can afford sustainably higher economic growth. PHOTO: Reuters

ISLAMABAD: The government may not be able to provide any significant tax relief to all the affected people and businesses while remaining with the International Monetary Fund (IMF) programme and is now considering limiting it largely to the salaried class and industrialists.

The government officials told The Express Tribune that the tax authorities have shared the list of relief measures with the prime minister and left the final decision to him. The finance ministry would now take up the final list with the IMF for its endorsement before June 10.

The proposed relief list included some adjustments for the salaried class, mainly for Rs200,000 to Rs300,000 monthly income, abolishing 15% dividend income tax on companies, withdrawal of 1% tax for exporters and whether to lower taxes on mobile phones.

There have also been proposals like reducing the corporate income tax rate and super tax. The choice could be whether to go for a headline number of abolishing 15% dividend income tax or partly lower the corporate or super tax rates, which may not have a big impact, the sources added.
 
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