Govt Plans Limited Relief for Salaried Class, Possible Rise in Electricity Bills in Upcoming Budget
The federal government is preparing to present the 2026–27 budget in the first week of June, with early indications suggesting limited relief for the salaried class alongside potential increases in electricity charges. These measures are expected as part of ongoing commitments with the International Monetary Fund (IMF), aimed at maintaining fiscal discipline and stabilizing the economy.
According to officials, the upcoming budget will largely align with IMF guidelines to ensure continued financial support and economic stability. As part of these conditions, the government is considering targeted tax relief for salaried individuals; however, any final decision will depend on approval from the IMF.
Authorities are also reviewing the gradual reduction of the super tax, though this too remains subject to international lender approval. At the same time, several existing tax exemptions—including income tax and sales tax reliefs across different sectors—may be withdrawn to increase overall revenue collection.
The government is unlikely to introduce new tax concessions in the next budget. Exemptions linked to special economic zones are also expected to be phased out, while restrictions may be placed on the domestic sale of goods produced in export processing zones. Expansion of new economic zones could also be limited going forward.
In line with IMF requirements, electricity and gas tariffs are expected to follow an automatic adjustment mechanism, which may lead to more frequent changes in utility bills.
On the social welfare side, the government has proposed increasing stipends under the Benazir Income Support Programme (BISP). If approved, the quarterly payment could rise from Rs. 14,500 to Rs. 19,500.
Meanwhile, the Federal Board of Revenue (FBR) is working on a strengthened centralized audit system aimed at improving tax compliance and expanding the tax base.
Additionally, plans are underway to establish a Pakistan Regulatory Registry by 2027 to simplify business regulations. The government also intends to gradually ease foreign exchange restrictions as part of broader economic reforms.
