The federal government is also examining tax relief measures for the real estate industry in the next Budget 2026-27. Proposed cuts in transaction taxes on property purchase and sales for tax payers are being evaluated.

Official sources said the budget may also decrease transaction taxes imposed on taxpayers involved in property transfers. The suggested reforms are intended at providing relief to the real estate sector and promoting verifiable economic activity.

The withholding tax on property transactions under section 236K could be decreased from 1.5 per cent to 0.25 per cent, sources in the Finance Ministry indicated. The suggested cut is being discussed as part of broader moves to alleviate the tax burden on property buyers.

The withholding tax under section 236C on the sale of property can also be reduced in a similar way. The existing rate of 4.5 percent is likely to be reduced to 1.5 percent under the proposed budget measures.

Sources at the Federal Board of Revenue (FBR) said the International Monetary Fund (IMF) has been told about the proposed changes in the taxes on property sector.

But the non-filers are not expected to get any relief in the 2019 budget. Sources said non-filers presently pay a combined 10.5 percent on property purchases and transactions, and the rates are likely to remain constant.

Officials said the collection of withholding tax rose by 29 percent during the current fiscal year from July to March over the same time of the previous year. Sources said that despite the increase in revenue from withholding tax, revenue from gain tax dipped from the previous fiscal year due to the impact of greater taxing on property transactions.

The reforms are expected to be finalised as part of the release of the federal budget for the next fiscal year.

Pakistan Stock Exchange (PSX) kicks-off new business week on sour note as Middle East tensions increase.

In opening session, KSE-100 index tumbled 855.34 points to hit 173,107.47 points, indicating negative change of 0.49 percent compared to previous finish of 173,962.81.

Oil prices jumped more than 2 percent in the meanwhile as Iran and the US exchanged strikes and Israel authorised soldiers to push farther into Lebanon in the fight with the Tehran-backed Hezbollah militant group.

U.S. oil futures increased $2.29, or 2.62%, to $89.65 a barrel at 0436 GMT. Brent futures gained $2.05 or 2.25% to $93.17 a barrel.

The stepped-up fighting, coming just after the U.S. hosted Israel-Lebanon peace talks in Washington on Friday, clouded expectations that the U.S. and Iran could soon announce an extension to their ceasefire agreement, which had pushed Brent and WTI to settle down 1.8% and 1.7% respectively on Friday.

The authorities have issued a fresh notification reinstating the reduced timings for markets, shopping malls and public places with effect from June 1, 2026.

Under the new restrictions, retail shops and shopping centers will be closed by 8 p.m. while restaurants, food outlets, bakeries and grocery stores will close at 10 p.m.

Important Note Services like medical stores, hospitals, petrol pumps and CNG stations will continue to function as usual and the limits shall not apply to them. Similarly, the new schedules would not affect milk and dairy businesses, gymnasiums, sports courts, IT enterprises and contact centers.

The notification also ordered that wedding halls, private event venues and marquees should close by 10 p.m. However, takeaway and home delivery services will continue without limits.

The new schedule is meant to limit business hours, but still retain access to crucial services for people, authorities said.