Federal Budget 2026 Announcement

Updated: 1:54 PM PKT — June 3, 2026

Prime Minister Shehbaz Sharif, in a meeting with leading industrialists and businessmen, has stated that the upcoming budget for the 2026-27 fiscal year will include measures aimed at providing public relief. He emphasised that an export-led growth strategy remains the central pillar of the country’s economic policy and that measures are being taken to bring the informal economy into the tax net.

The premier highlighted that business-friendly policies have helped stabilise the economy and restore investor confidence. The business leaders, in turn, expressed confidence in the government’s economic management and presented their own proposals for the budget. They also welcomed tax reforms and government initiatives to improve the ease of doing business, such as reforms in tax tribunals and the potential establishment of Special Commercial Courts.

Updated: 11:51 AM PKT — June 3, 2026

The federal government is considering a significant reduction in taxes on the purchase and sale of immovable property in the upcoming fiscal budget to stimulate the real estate and construction sectors. The proposal aims to cut the tax rate for filers on property purchases from 1.5 per cent to 0.25 per cent, and on property sales from 4.5 per cent to 1.5 per cent.

These proposed tax relief measures are currently being negotiated with the International Monetary Fund (IMF), which has reportedly expressed reservations. Government officials believe the move will boost market activity, investment, and employment, ultimately leading to higher overall tax revenues despite the lower rates.