The federal government has ended tax on feminine hygiene products in the Budget 2026-27.
Tax on sanitary pads and related products has been abolished as part of measures concerning women's health.
Moreover, the government has removed tax on contraceptive products as part of measures aimed at controlling population growth, according to the budget speech.
Separately, the tax on international transactions made through debit and credit cards has been reduced from 5 per cent to 0.5 per cent.
The budget speech also announced the abolition of Capital Value Tax on foreign assets.
The government said the measure would encourage Pakistanis to declare foreign financial assets and bring them on record.
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.
