Islamabad, January 8, 2026 — The Tax Policy Office (TPO), operating under the Ministry of Finance, has invited tax-related proposals from stakeholders for the federal budget 2026-27 following the formal separation of tax policy formulation from the Federal Board of Revenue (FBR).
Dr. Najeeb Memon, Director General of the Tax Policy Office, has issued a Strategy Paper on Taxation outlining the revised budget-making framework for the upcoming fiscal year. He stated that the restructuring marks a major shift in Pakistan’s fiscal governance, with tax policy now being shaped independently of revenue collection functions.
According to the strategy paper, taxation policies will be guided by long-term economic value, policy consistency, and growth-oriented reforms rather than short-term revenue pressures. The budget preparation process will involve extensive consultations with stakeholders to ensure fair representation and avoid placing undue burden on productive sectors of the economy.
Dr. Memon emphasized that, given current economic challenges, taxation policies must be aligned with energy tariffs, financing costs, and broader growth objectives. The upcoming budget will form a key component of the government’s long-term financial planning and must reflect national development priorities outlined in policy frameworks such as Uraan Pakistan.
Key focus areas include export-led growth through enhanced competitiveness and foreign direct investment, expansion of the manufacturing and mining sectors, promotion of information and communication technology (ICT) for digital transformation, environmental sustainability, energy efficiency, and social equity. The strategy also highlights the importance of women’s workforce participation and youth employment.
Stakeholders are encouraged to submit proposals using the prescribed format (Annexure-I), particularly those addressing inefficiencies, inequities, and complexities in existing tax laws. Proposals must be submitted by January 30, 2026.
The Tax Policy Office stated that all submissions will be carefully reviewed for possible inclusion in the federal budget 2026-27.