ISLAMABAD: The government has finalized its decision not to impose new taxes on solar panels and fertilizers in the upcoming fiscal year’s budget for 2026-27, the government plans to raise income tax on the import of specific products, increasing it from 1% to 2% for some, and from 2.50% to 5.50% for others.
In the next fiscal year, an estimated Rs8,200 billion will be allocated to provinces under the National Finance Commission (NFC) Award. The distribution includes over Rs4,000 billion for Punjab, Rs2,000 billion for Sindh, approximately Rs1,300 billion for Khyber Pakhtunkhwa, and around Rs750 billion for Balochistan.
A meeting of the National Assembly Standing Committee on Finance, chaired by MNA Syed Naveed Qamar, was held in Islamabad on Monday. During the session, Qamar confirmed that the federal budget for 2026-27 is scheduled to be presented in the National Assembly on June 5, 2026. He also mentioned that economic experts will brief the committee on the upcoming budget.
Economist Ali Salman provided an optimistic outlook, stating that Pakistan’s economy is showing signs of stability. He noted that foreign exchange reserves have crossed $22 billion, with the State Bank’s reserves worth Rs17 billion. Remittances from overseas Pakistanis have reached $33 billion, bolstering the economy.
Salman highlighted that Pakistan’s current account deficit stands at $324 million, and inflation remains in the double digits. He also pointed out a decline in government borrowings.
Javed Hanif added that the government has achieved relief by reducing interest rates, which is expected to support economic growth.
