Funding to support satellite-based mineral exploration and resource mapping
ISLAMABAD, June 12, 2026 — Government allocates Rs311.8 million for the Petroleum Division under the Public Sector Development Programme (PSDP) in Budget 2026–27, according to official documents released on Friday.
The allocation has been earmarked for a new initiative titled “Accelerated Geological Mapping and Mineral Exploration Using Modern Satellite Imaging-Based Technologies for Unmapped Areas in Pakistan,” aimed at enhancing the country’s capacity to identify untapped mineral resources.
The project is intended to support long-term energy planning and resource development through advanced satellite-based surveying techniques.
Focus on Mineral Exploration and Resource Mapping
Officials said the initiative will strengthen geological data systems and improve the identification of potential mineral-rich zones across unexplored regions of the country.
The use of modern satellite imaging is expected to enhance efficiency in surveying and reduce the time required for large-scale geological assessments.
Broader Fiscal Reforms Announced in Budget
Alongside development allocations, the Budget 2026–27 introduced a series of tax and fiscal policy reforms aimed at expanding the tax base and supporting economic activity.
The government has proposed the removal of the first six slabs of the super tax structure. Under the revised plan, income exceeding Rs500 million will now be taxed at 8%, down from 10%, as part of efforts to rationalise high-income taxation.
Property Sector Tax Reductions Proposed
To support the real estate sector, withholding tax rates on property transactions have also been proposed for reduction.
For tax filers, withholding tax on property purchases is expected to fall from 2.5% to 1.25%, while tax on property sales may be reduced from 5.5% to 2.75%, aiming to improve liquidity and encourage formal market activity.
Retail Sector Fixed Tax Scheme Introduced
The government has also introduced a fixed tax scheme for retailers under the “Asaan” initiative, targeting businesses with annual sales of up to Rs200 million.
Under the proposed structure, eligible retailers will pay either a minimum fixed tax of Rs25,000 per year or 1% of total sales, whichever is higher.
Policy Aimed at Balancing Revenue and Growth
Officials said the budget measures reflect a broader strategy to balance revenue generation with incentives for investment across construction, retail, and resource exploration sectors, supporting long-term economic stability.
