Federal budget for next fiscal year expected to be around Rs17.5 trillion, sources

Islamabad: The size of the federal budget for the fiscal year 2026-27 is expected to be approximately Rs17.5 trillion.

According to sources in the Ministry of Finance, budget negotiations with the IMF have been completed and an agreement has been reached on key budget targets. However, virtual discussions between the Federal Board of Revenue (FBR) and the IMF are still underway regarding tax relief for the salaried class.

Sources further revealed that new taxes worth Rs220 billion will be imposed in the federal budget for the upcoming fiscal year 2026-27. The new budget will also include revisions to the tax slabs for salaried individuals.

Similarly, according to FBR sources, the threshold for the highest tax slab applicable to the salaried class will be increased in the upcoming federal budget. Measures such as a fixed tax scheme for traders and an increase in sales tax on hybrid and electric vehicles have also been finalized.

Meanwhile, economic officials stated that additional tax collection measures are being introduced in the budget to help the FBR achieve its revenue targets.