Budget 2026-27 Pakistan: Government Salary Increase, Pension Hike & IMF Tax Cuts Expected

The federal government is set to present the Budget 2026-27 today in the National Assembly, with expectations of major relief measures for government employees and key economic reforms aimed at stabilizing growth and increasing revenue.

The official sources say that the total federal budget 2026-27 estimated to exceed Rs. 17.5 trillion. Federal Minister of Finance will present the budget, including important proposals on tax reform, wages, pensions, export, and retail sector reform.

One of the most anticipated developments in the Pakistan budget 2026-27 is the expected increase in salaries and pensions of government employees. According to the sources, the proposed budget 2026-27 in Pakistan includes a salary increment of 10% to 15% for public sector employees, offering relief to millions of people as they grapple with increasing inflation.

The budget also expected to feature tax reforms backed by the IMF. The International Monetary Fund (IMF) has in principle agreed to cut taxes on buying and selling property for tax filers, according to reports. This could have profound effects on the property tax system in Pakistan and help formalize real estate transactions.

The budget is also likely to introduce a special export promotion package aimed at boosting Pakistan’s external trade and strengthening foreign exchange reserves. In the meantime, a new tax model for the retail sector anticipated, aimed at enhanced tax compliance and extending the tax base.

The federal budget Pakistan 2026-27 also projected to have a tax revenue target of approximately Rs. 15,264 billion – the government not only interested in revenue collection but in its structural reform as well.

The budget expected to have a significant impact on the economic trajectory of Pakistan in the face of inflationary pressures and IMF program demands. Now, all eyes are on the National Assembly as the country awaits official confirmation of these gigantic financial decisions.