Budget 2026-27: Relief likely for Pakistanis earning Rs200,000-Rs300,000 per month salary

ISLAMABAD – The Federal Board of Revenue (FBR) has submitted a set of tax relief proposals for salaried class to Prime Minister Shehbahz Sharif for consideration, with final approval expected to involve consultations with the International Monetary Fund (IMF) before June 10. According to details, the proposals include a possible reduction in income tax rates for salaried individuals earning between Rs200,000 and Rs300,000 per month. The salary bracket is estimated to cover around 550,000 taxpayers. The package also suggests adjustments to higher salary slabs, including potential revisions in tax thresholds and rates for high-income earners. Following review at the government level, the finance ministry is expected to engage with the IMF for approval. Final decisions on the relief measures will be made after the completion of these negotiations in the coming days. Meanwhile, the federal government is mulling a 10 to 15 percent increase in salaries for government employees in the upcoming 2026-27 budget. Prime Minister Shehbaz Sharif held consultations on the next fiscal budget during an informal meeting at the PM House, which was not open to media coverage. The meeting reviewed key budgetary matters, including the Public Sector Development Programme (PSDP), taxation measures, and proposed increases in salaries and pensions for government employees. Finance Minister Muhammad Aurangzeb briefed the prime minister on important aspects of the budget. Reports said that a salary increase between 10 and 15 percent has been proposed in line with inflation trends. However, the prime minister directed that a detailed working be carried out based on available financial resources to determine the level of relief that can be provided to employees. A final decision regarding salary increases will be made by Prime Minister Shehbaz Sharif after consultations with coalition partners. Budget 2026-27 Date The federal government will present its budget for fiscal year 2026-27 on June 10,