Business

Pakistan, IMF ‘agree’ on major budget targets for FY2026-27

Published

4 months ago

May 31, 2026

Bilal

Sources said the federal budget for FY2026-27 was likely to be around Rs18 trillion. Most of the financial issues have been discussed and settled but the virtual negotiations between the Federal Board of Revenue (FBR) and the International Monetary Fund (IMF) are apparently ongoing on ideas to provide relief to the salaried class.

The IMF has agreed to cut the FBR’s tax collection target for the current fiscal year for the second time, sources said.

The revised objective has been decreased to Rs13.005 trillion from Rs13.979 trillion, according to reports. The government is likely to fix a total tax collection target of around Rs15.264 trillion for the next financial year.

The proposed revenue break-up is Rs7.413 trillion from direct taxes, Rs4.727 trillion from sales tax, Rs1.651 trillion from customs duties and Rs1.043 trillion through Federal Excise Duty.

IMF asks Pakistan to broaden tax net, boost revenue collection
Meanwhile, the Petroleum Development Levy (PDL) is projected to continue to be a major source of government revenue. Sources said the target for PDL collections could be boosted to Rs1.727 trillion in the next fiscal year as against Rs1.468 trillion for this year.

Non-tax revenue is likely to be around Rs2,768 billion while petrol surcharge receipts are estimated at roughly Rs151 billion.

On the spending side, debt servicing will probably remain the major budgetary burden on the federal government. Total interest and debt servicing payments are anticipated to be Rs7.824 trillion. Of that, Rs6.652 trillion is for domestic debt and Rs1.107 trillion for foreign debt servicing.

Sources also say the forthcoming budget may propose new taxing measures of around Rs220 billion to help achieve budgetary targets set with the IMF.

Besides, changes in income tax brackets for salaried people are also allegedly on the cards. The government is looking at ways to provide some assistance to taxpayers in the formal sector.

The federal budget will be delivered in the next several days, providing further insight into taxation, spending objectives and economic strategy for the new financial year.

Business

Petrol price goes up by Rs2.10, diesel by 30 paisa a liter:

Published

1 day ago

October 3, 2026

Bilal

– Petrol and diesel prices have been increased once again under the latest fuel-price revision.

The revised prices will take effect from October 3, 2026.

According to a notification issued by the Petroleum Division, the price of petrol has been increased by Rs2.10 per litre. Following the latest increase, petrol will now cost Rs392.76 per litre.

The price of high-speed diesel has also been raised by 30 paisa per litre, taking its new rate to Rs399.64 per litre.

The Petroleum Division said the announced rates are linked to movements in international petrol and diesel prices.

According to the notification, changes in the global market, Platts rates, premiums and other associated costs were taken into account when determining the revised prices.

Business

Petrol price cut by Rs1.49, diesel drops Rs2.73 per litre

Published

4 days ago

September 30, 2026

Bilal

The recent revision in fuel-price has again lowered petrol and diesel costs.

Petrol has been cheaper by Rs1.49 per liter and diesel by a higher Rs2.73.

The new rates will come into effect from 30 September 2026.

Under the latest revision, the price of petrol will be Rs387.54 per liter and diesel would be Rs402.24 per liter for motorists starting September 30.

The latest change is another straight fall in the price of petrol.

Petrol has come down by Rs3.76 per liter and diesel by Rs6.29 per liter in the last two revisions.

Business

Dollar eyes big September jump, largely at euro’s expense

Published

4 days ago

September 30, 2026

Bilal

The dollar was near this year’s high against the euro and heading for its biggest monthly gain against it in 14 months on Wednesday, thanks to US growth and rising US interest rates relative to oil and debt worries swirling in Europe.

The euro dropped to an 11-month low of $1.1312 on Tuesday and was last quoted at $1.1339 in Asia on Wednesday. The euro is also challenging support at about 178 yen.
The dollar is up almost 2.5% against the euro in September and is on track for a third consecutive quarterly gain.

The Aussie dollar fell below 70 cents for the first time since early August as the stronger greenback dragged it down to a nine-week low of $0.6959 after inflation data came in a tad below predictions.”The US economy is running hot, Europe is losing the global AI race and energy supplies and French politics remain big concerns for the euro,” said Brent Donnelly, president of foreign exchange trading at analytics firm Spectra Markets.

European benchmark gas prices jumped earlier this month to their highest since 2022.

French markets are being squeezed by debt and political paralysis ahead of next year’s presidential election with the margin with German rates blowing out above 115 basis points to its largest since 2012.

Options prices have just shifted dramatically to suggest investors prefer buying protection from potential euro declines – though Donnelly argues the dollar probably needs strong US data to make advances from here.

The dollar also struck a 16-1/2-month high against the Swiss franc of 0.8358 francs on Tuesday. The franc has been hit in part because investors have been searching for low-yielding alternatives to yen to sell so they can get carry elsewhere.

The yen has fallen out of favor as a short against the dollar, with US-Japan currency buying in July and August, then warnings not to test their resolve and a rise in the pace of Japanese rate hikes.

The dollar has lost 2% against the yen so far this month and ⁠almost 3.8% for the quarter to date, hitting a nearly two-week low of 156.38 in Asia trade.

The Fed’s favored inflation gage, US core PCE, is coming later on Wednesday but the market is looking forward Friday’s US jobs data which if strong might bolster predictions that US interest rates are headed higher.

Some of those hopes got knocked overnight when prominent New York Fed President John Williams indicated there is “no need for urgency” in raising rates. The yield on the two-year Treasury declined by 3.5 basis points and the odds in Fed funds futures of a rate hike next month fell to 50% from 71%.

The New Zealand dollar on Tuesday hit its lowest since last November and was last at $0.5645.

Sterling dropped to a three-month low on Tuesday and last traded near that level at $1.3230. The yuan was headed for a seventh quarterly increase in a row against the dollar in its last session before China’s Oct. 1-7 holidays.