Business

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

Published

3 weeks 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

Mango exports from Pakistan decline as the effects of the Middle East conflict persist

Published

13 hours ago

June 21, 2026

Bilal

economy that relies heavily on agriculture but is in the middle of the Middle East crisis, which its government has assisted in resolving.

This week, Pakistan announced an initial agreement between the warring parties, but it is too late for Sindh’s mango season, which started in June.

Due to declining demand in important countries, such as the Gulf, and skyrocketing shipping costs, mango dealers told AFP they anticipate a minimum 30% decline in export sales this year.

In addition to the financial hardship, local households are delaying purchasing the fruit due to a jump in inflation brought on by the regional crisis, which is lowering domestic sales.

Business

Jet fuel costs plummeted following cuts to petrol and diesel

Published

14 hours ago

June 21, 2026

Bilal

Following large reductions in the price of petrol and diesel, the government has lowered the price of jet fuel, which has raised anticipation for cheaper airfares.

Jet fuel is now priced at Rs238.87 per litre after a price reduction of Rs56.97 per litre, according to reports.

According to sources, a drop in jet fuel prices could result in lower airfares, which would benefit travellers.

This comes one day after the government announced significant price reductions for petrol and diesel, lowering them by Rs74.28 and Rs67.31 per litre, respectively.

Business

Today, the National Assembly officially starts the budget approval process.

Published

14 hours ago

June 21, 2026

Bilal

Today, Sunday, the National Assembly is set to formally begin the process of approving the government budget for the next fiscal year.

The National Assembly will hear 135 grant requests totalling more than PKR 104.14 trillion from Finance Minister Muhammad Aurangzeb for final clearance.

It is anticipated that 88 of these requests, totalling more than Rs 43.85 trillion, will be approved without any reduction motions. But the opposition is getting ready to use detailed cut motions to contest a sizable chunk of the budget.

Details show that 587 cut motions on 47 proposals totalling more than Rs 60.29 trillion would be submitted by opposition MPs.

During the process, a number of ministries and divisions are also being examined. There are 91 cut motions on 19 demands that the Cabinet Secretariat and its affiliated departments must deal with. There will be 116 cut motions to discuss the six demands of the Energy Division, which total more than Rs 661.26 billion.

The Ministry of Interior would be exposed to 123 reduction motions on four claims totalling more than Rs 74.35 billion, while the Ministry of Finance itself will face 100 cut motions on demands over Rs 42.82 trillion.

Additionally, the opposition will bring 45 cut motions for the Poverty Alleviation Division, which has allocations above Rs 859 billion across three demands.

Over the next few days, the assembly is anticipated to continue the budget approval process amid in-depth discussion, examination, and political contestation.