IMF Consultations Shape Pakistan’s FY27 Budget in Early June

Pakistan’s federal budget for fiscal year 2026-27 is set to be presented in the first week of June, according to sources on Wednesday.

The economic team has formally started working papers for the budget with an IMF delegation expected to arrive in early May for discussions.

Initial proposals include relief measures for various sectors and a reduction in slab-wise income taxes for salaried individuals. Business chambers’ recommendations to improve ease of doing business are also under consideration.

Officials are reviewing proposals to gradually reduce the super tax and streamline the Benazir Income Support Programme (BISP) by enhancing its efficiency and outreach.

Plans are under discussion to withdraw selected income and sales tax exemptions across sectors, with changes to tax policies for special economic zones likely. Energy pricing reforms are part of the upcoming fiscal plan, with mechanisms being developed to adjust electricity and gas tariffs in a timely manner.