ISLAMABAD: Pakistan has accelerated preparations for the federal budget for fiscal year 2026-27, with the government considering new tax measures to increase revenue in line with conditions set by the International Monetary Fund, sources said on Thursday.
According to officials, the government is likely to present the budget on June 5.
Sources said authorities were considering imposing more than Rs230 billion in new taxes in the upcoming budget. The government is also planning additional tax measures aimed at generating nearly Rs700 billion in extra revenue.
Officials estimate that economic growth and inflation could also contribute more than Rs1.3 trillion in additional tax collection during the next fiscal year.
Sources said the IMF would play a key role in shaping the budget strategy. An IMF delegation is expected to hold meetings with the Ministry of Finance, the State Bank of Pakistan and other officials in the coming days.
The talks will focus on Pakistan’s tax targets, economic goals and plans to reduce the country’s debt burden.
The government is also focusing on increasing the tax-to-GDP ratio by bringing a larger part of the economy into the tax net.
Under the proposed policy, authorities plan to expand the number of taxpayers and are considering setting a target of 7.5 million income tax returns for the next fiscal year.
Sources said the government may also reduce or withdraw certain sales tax exemptions, impose additional taxes on selected sectors and introduce stricter measures against non-filers.
However, officials said final decisions would be made after consultations with the IMF and completion of internal government discussions.
