State ministry signals targeted relief for salaried class in FY27 budget amid IMF-linked fiscal constraints
The government is expected to reduce the tax burden on salaried individuals in the upcoming FY27 federal budget, Minister of State for Finance and Revenue Bilal Azhar Kayani said.
Speaking at a pre-budget seminar organized by the Rawalpindi Chamber of Commerce and Industry (RCCI), the minister said the federal budget for FY27 is expected to be presented in the first week of June 2026.
He said the government intends to provide relief to taxpayers and the salaried class, but acknowledged that fiscal space remains limited due to commitments under the International Monetary Fund (IMF) programme.
Kayani assured the business community that there would be “zero tolerance” for harassment by tax authorities and emphasized continued efforts to improve the tax administration system.
He said Pakistan has achieved macroeconomic stability over the past two years through fiscal discipline, pointing to improved foreign exchange reserves and restored confidence from international financial institutions.
The minister added that despite regional geopolitical tensions, the Pakistani rupee remained stable and the country avoided fuel shortages seen in some other regional economies.
He said boosting exports and strengthening domestic economic capacity remain key government priorities, with the long-term goal of reducing reliance on IMF assistance.
Kayani also highlighted ongoing reforms aimed at supporting small and medium enterprises (SMEs), including an extension in the utilization period for imported goods for small exporters to 18 months to improve ease of doing business.
On privatization, he said the process is progressing rapidly, noting that the privatization of Pakistan International Airlines has recently been completed, while work on three power distribution companies is underway.
He added that the government is also pursuing housing finance initiatives approved by the prime minister to stimulate construction sector activity.
Business leaders attending the seminar urged the government to abolish the super tax, reduce corporate and sales tax rates, and increase the income tax threshold for salaried individuals.
They also called for measures to reduce the cost of doing business and the introduction of a long-term industrial policy to ensure sustainable economic growth.
