ISLAMABAD: Pakistan and the International Monetary Fund (IMF) have reportedly reached an understanding on key fiscal and budgetary targets for the 2026-27 financial year after completing extensive discussions on the federal budget.
According to informed sources, the upcoming federal budget is expected to total nearly Rs18 trillion. While most budget-related negotiations have been concluded, discussions between the IMF and the Federal Board of Revenue (FBR) are still ongoing through virtual meetings, particularly regarding possible tax relief measures for salaried taxpayers.
Sources indicate that the IMF has approved a further downward revision in the FBR’s tax collection target for the current fiscal year. The target has reportedly been reduced from Rs13.979 trillion to Rs13.005 trillion. For FY2026-27, the government is expected to set a tax revenue goal of around Rs15.264 trillion.
The proposed revenue plan includes Rs7.413 trillion from direct taxes, Rs4.727 trillion from sales tax, Rs1.651 trillion from customs duties, and Rs1.043 trillion from the Federal Excise Duty.
The Petroleum Development Levy (PDL) is expected to remain a significant source of revenue, with collections projected to rise to Rs1.727 trillion next year from Rs1.468 trillion in the current fiscal year.
Meanwhile, non-tax revenues are estimated at approximately Rs2.768 trillion, while gas surcharge receipts could contribute around Rs151 billion.
Debt servicing is expected to account for the largest share of federal expenditures. Total debt-related payments are projected at Rs7.824 trillion, including Rs6.652 trillion for domestic debt and Rs1.107 trillion for external obligations.
To achieve agreed fiscal objectives, the government is reportedly considering additional taxation measures worth nearly Rs220 billion. Authorities are also reviewing income tax slabs for salaried individuals, with the aim of offering some relief to formal-sector taxpayers.
The federal budget is expected to be unveiled in the coming days, outlining the government’s taxation strategy, expenditure plans, and broader economic priorities for the next fiscal year
