Education may get more expensive in Pakistan after Budget 2026-27

ISLAMABAD – The federal government is considering withdrawing the existing tax concession on stationery items in the budget for fiscal year 2026-27. According to reports, the proposal is being reviewed following recommendations from the International Monetary Fund (IMF), which has urged the government to eliminate the current exemption. As part of the plan, the General Sales Tax (GST) on stationery products could be increased from the existing 8 percent to 18 percent, effective July 1, 2026. If approved, the move is expected to jack up the prices of essential educational supplies, including pens, pencils, notebooks, and paper, potentially increasing the cost of education across the country. The proposed tax hike could also significantly raise office operating expenses, as businesses face higher costs for everyday stationery and printing materials. Budget 2026-27 Date The federal government will present its budget for fiscal year 2026-27 on June 10, Deputy Prime Minister Ishaq Dar said on Wednesday. Last month, President Asif Ali Zardari summoned budget session on June 5. However, it was later delayed to finalise some fiscal measures with the International Monetary Fund. “It was unanimously agreed to recommend to Prime Minister Muhammad Shehbaz Sharif @CMShehbaz that the Budget for fiscal year 2026–2027 be announced on Wednesday, 10 June 2026,” DPM office said in a social media post.