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Finance Minister Muhammad Aurangzeb defended the FY27 budget in the National Assembly, saying it aims to accelerate sustainable growth while broadening the tax base. He also announced relief measures for agriculture, salaried taxpayers and selected essential sectors.
Pakistan’s latest fuel price cut includes a major reduction in petrol levy but a higher levy on diesel, according to reported pricing details. The structure may provide immediate pump relief while raising questions about freight, inflation and government revenue.
Goods transporters have announced a 15 percent cut in freight fares after the federal government reduced petrol and diesel prices. The move could ease logistics costs, but transport leaders are also demanding relief on taxes, tolls, e-challans and motorway fines.
The government has assured PTI that the finance minister will discuss extending Fata and Pata tax exemptions with the IMF before their June 30 expiry. The issue has become a major budget and political concern for lawmakers from the merged tribal districts.
PPP has demanded that the government raise the proposed salary increase for public-sector employees from 7 percent to 10 percent. Raja Pervaiz Ashraf said government employees, pensioners and inflation-hit households need stronger relief in the federal budget.
The Pakistan Stock Exchange fell more than 2,800 points in intraday trade after delays in US-Iran technical talks unsettled investors. The reversal ended a four-day rally driven by easing geopolitical tensions and lower oil price expectations.
Prime Minister Shehbaz Sharif has hinted at a major cut in petroleum prices, saying the government will announce weekly fuel rates today as global oil prices fall. The expected relief could affect transport, agriculture, business costs and household budgets across Pakistan.
The Senate has adopted 123 recommendations for Budget 2026-27, seeking higher income tax relief, reduced electricity bills and lower taxes on essentials. The proposals now move to the National Assembly before the final budget vote.
The Asian Development Bank has approved a $700 million loan to reform Pakistan’s insurance sector and expand financial protection for households, farmers, businesses and public finances. The programme aims to improve disaster resilience, deepen insurance markets and support long-term economic stability.
Punjab plans to establish an FBR-style revenue authority to bring provincial tax streams under one structure. The reform is part of the FY2026-27 budget strategy aimed at boosting collections, digitising systems and improving fiscal management.
FBR Chairman Rashid Mahmood Langrial has revealed that 9,000 Pakistanis with around Rs750 billion in bank accounts paid no income tax. The tax authority says data analysis has exposed serious underreporting and that work has begun on a faceless tax system to improve enforcement.
Punjab has reduced its FY27 Annual Development Programme to Rs752 billion, around 40 percent lower than last year’s allocation. The province is prioritising social sectors, infrastructure, agriculture, transport and climate spending while contributing a large surplus to the national fiscal framework.
