Sources in the finance department of the province have said that the Balochistan government will table its budget for the fiscal year 2026-27 in the third week of June.

The next budget is likely to be surplus and tax-free, continuing the province’s recent fiscal policy stance, the Balochistan Finance Department said.

Total budget outlay is expected to touch Rs1.2 trillion approx.

The education sector is likely to get the highest allocation with an estimated Rs150 billion earmarked for educational development and other expenses.

Officials said the salaries of government personnel are also expected to be increased in line with the pay rise policy of the federal government.

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.

People had problems during PTI government; Khyber Pakhtunkhwa (KP) Governor Faisal Karim Kundi

Speaking at the inaugural ceremony of the new NADRA office here on Saturday, the KP governor claimed people’s companies were targeted for political revenge.

KP had resources but its people were going through economic hurdles and difficulties, said Faisal Karim Kundi. Governor announces gas supply project for Kurai, Kotla Syedan

Earlier, Faisal Karim Kundi said the attempts to resume commercial operations at Dera Ismail Khan Airport were being intensified and the facility will soon be rendered operational for ATR flights after completion of the remaining construction work.

Addressing media persons, Kundi thanked Defence Minister Khawaja Asif for his assistance for resuscitation of Dera Airport and said that the carpeting of runway had already been completed and the extra work was under way to resume regular flight operations.