Pakistan Prepares Tough Budget 2026 Under Stringent IMF Conditions

Pakistan is preparing a tough federal budget for 2026-27 under stringent International Monetary Fund (IMF) conditions. Pakistan-IMF budget talks have concluded, and the government is reportedly preparing a major hike in taxes. Massive new taxes are expected on essential items, and the salary class is once again on the government’s radar, with a new tax burden ahead. The government plans to impose heavy taxes under the IMF programme. Dr. Salman Shah stated that excessive taxation is due to the IMF’s primary surplus condition, which is part of the IMF’s 11 new tough conditions. Prices are likely to rise in the next fiscal year.