The federal government has announced tax relief for the salaried persons.
The tax rate for individuals earning between Rs2.2 million and Rs3.2 million annually has been reduced from 23 per cent to 20 per cent.
For those with annual incomes ranging from Rs3.2 million to Rs4.1 million, the tax rate has been cut from 30 per cent to 25 per cent.
Individuals earning between Rs4.1 million and Rs5.6 million a year will now pay 29 per cent tax, down from 35 per cent.
The tax rate for those earning between Rs5.6 million and Rs7 million annually has been reduced from 35 per cent to 32 per cent.
It is pertinent to note that the total outlay of Pakistan's federal budget 2026-27 is estimated at around Rs18.771 billion, with a focus on fiscal consolidation, IMF compliance, and modest relief measures.
Key figures include an ambitious FBR tax target of around Rs15.264 trillion, non-tax revenue of Rs2.77 trillion, and Petroleum Development Levy of Rs1.73 trillion.
Major expenditures are dominated by debt servicing (Rs8.54 trillion), defence (Rs3 trillion), and a constrained federal PSDP of Rs1 trillion (national development outlay Rs 3.2–3.7 trillion).
According to the Ministry of Finance, Rs1,169 billion has been allocated for pensions and Rs1,71 billion for civil government affairs.
The budget follows an Economic Survey showing around 3.7% GDP growth in the outgoing year and includes expected 10% salary/pension increases alongside tax base broadening efforts.
