Pakistan is preparing to present its federal budget in the first week of June, with key economic decisions already taking shape. The government is aligning the budget with the program of the International Monetary Fund while also aiming to provide some targeted relief to the public.
Officials say the upcoming budget will be designed according to IMF conditions to ensure financial discipline and meet the requirements of the ongoing loan agreement.
As part of the proposals, the government is considering relief for the salaried class. At the same time, there are plans to gradually reduce the super tax, but only after consultation with the IMF.
Authorities are also working on major tax reforms, including the removal of income tax and sales tax exemptions in various sectors. No new tax exemptions will be introduced, and existing incentives for special economic zones are expected to be withdrawn.
The government plans to restrict the sale of goods produced in export zones within the local market. It will also limit the creation of new economic zones for now, showing a cautious approach to industrial expansion.
On the relief side, the government has proposed increasing payments under the Benazir Income Support Programme. The stipend is expected to rise by Rs5,000, increasing from Rs14,500 to Rs19,500, depending on available resources.
The Federal Board of Revenue will also strengthen and centralize its audit system to improve tax collection. In addition, a Pakistan Regulatory Registry is planned by 2027 to streamline regulations.
The government is also looking to gradually ease foreign exchange restrictions as part of broader reforms aimed at improving business confidence and financial stability.
Overall, the budget reflects a balance between meeting IMF requirements and offering limited relief to citizens, while introducing stricter financial controls and long-term structural changes in taxation and energy pricing.
