Government Finalizes Federal Budget 2026-27 Proposals With New Taxes and Hikes

Pakistan News June 2, 2026

2 weeks ago|2 weeks ago|

The government has finalized its federal budget 2026-27 proposals, which include new taxes and hikes. Expected taxes and key details have been revealed, with new taxes and levies announced. The government is preparing key decisions for the Pakistan Budget 2026-27, for which a big update was finally revealed. Funds have been allocated for industrial sector growth in Budget 2026. A salary increase for government employees is also part of the Budget 2026-27. PM Shehbaz Sharif termed the Rs 1,126 billion development budget insufficient, according to sources. Rs 220 billion in new taxes are coming, details revealed by Shahbaz Rana. Under an FBR proposal for Budget 2026, non-filers may face heavy taxes on crypto usage.

Latest Updates

Updated: 6:29 PM PKT — June 2, 2026

Further details on the upcoming federal budget reveal a significant move to tax cryptocurrency transactions. The government is expected to impose a Capital Gains Tax (CGT) of 10% to 30% on profits from crypto trading, a measure reportedly advised by the International Monetary Fund (IMF). To implement this, a new clause is likely to be added to the Income Tax Act 2001.

This initiative aims to bring Pakistan’s estimated 9 million cryptocurrency users into the tax net, potentially generating billions in revenue. The move comes as a legal framework for cryptocurrency is being prepared, and the central bank has previously decided to move towards legalizing virtual assets and introducing a national digital currency.

Updated: 4:56 PM PKT — June 2, 2026

The presentation of the federal budget for the fiscal year 2026-27 has been postponed to June 10 from its original date of June 5. The delay follows the postponement of a crucial National Economic Council (NEC) meeting to allow for further deliberations on the Public Sector Development Programme (PSDP).

Ongoing consultations with the International Monetary Fund (IMF) are also a key factor in the rescheduling. Sources indicate the government is seeking to ensure the budget’s fiscal framework aligns with IMF expectations on revenue and expenditure before it is formally announced, aiming to avoid last-minute changes.

Updated: 3:22 PM PKT — June 2, 2026

The presentation of the federal budget, previously scheduled for June 5, has been postponed. A new date for the budget’s unveiling has not been officially determined, though sources suggest it may be presented on June 8, 10, or 12.

In a related development, the National Economic Council meeting set for June 3 has also been deferred. A notification has been issued confirming the postponement, with a new date for the meeting to be announced later.

Updated: 2:51 PM PKT — June 2, 2026

The presentation of the federal budget for 2026-27, originally scheduled for June 5, has been postponed, with a new date yet to be finalized. The National Economic Council (NEC) meeting, planned for June 3, has also been delayed.

Meanwhile, key economic targets for the new fiscal year have been set, with a national development outlay of Rs 4,715 billion approved. The government has proposed an economic growth target of 4 percent, with sectoral targets of 3.8 percent for agriculture, 4 percent for industry, and 4.2 percent for services. The federal government plans to spend Rs 1,126 billion under its development program, while provincial governments will spend a combined Rs 3,138 billion.