Preparations and Proposals for Pakistan Federal Budget 2026-27

Updated: 8:21 PM PKT — May 31, 2026

The Pakistan Business Forum (PBF) has called on the government to present a business-friendly federal budget, urging a clear economic direction in what will be the third budget since the last elections.

PBF Chief Organizer Ahmad Jawad highlighted that business costs in Pakistan are over 34% higher than in the region, leading to business closures and widespread disappointment within the community. The forum demanded a growth-oriented budget that reduces existing taxes, brings new traders into the tax net rather than further burdening current taxpayers, and establishes competitive rates for electricity and gas to make utility bills manageable.

Updated: 6:19 PM PKT — May 31, 2026

Ahead of the federal budget, the Annual Plan Coordination Committee (APCC) will meet on Monday to approve key recommendations for development expenditures and economic targets for the fiscal year 2026-27. The meeting, chaired by Federal Minister for Planning Ahsan Iqbal, will consider a proposal to allocate Rs 1,126 billion for the Public Sector Development Programme (PSDP) and will discuss a recommended economic growth (GDP) target of 4%.

Recommendations approved by the APCC will be forwarded to the National Economic Council (NEC). The NEC, in a meeting chaired by Prime Minister Shehbaz Sharif expected on June 3, will grant final approval for the development projects, economic growth targets, and other government expenditures for the upcoming budget.

Updated: 4:17 PM PKT — May 31, 2026

The federal budget for the fiscal year 2026-27 is scheduled to be presented on June 5, following the conclusion of negotiations with the International Monetary Fund (IMF).

A key proposal under consideration involves a potential reduction in the import tax on mobile phones from 25% to 18%. If approved, this could lower the prices of high-end devices, including iPhones and Samsung flagship models valued over $500. However, reports also suggest the current PTA tax structure on imported premium phones may be maintained, offering no immediate relief. The proposed tax cut faces strong opposition from local smartphone companies, who argue that cheaper imported phones would negatively impact the domestic market.