What’s New in Budget 2026-27 after amendments? A look at key changes taking effect from July 1

ISLAMABAD – Pakistanis are preparing for new financial From tax relief for salaried workers and exporters to higher salaries, expanded welfare programs, and major infrastructure investments, the newly approved Budget 2026-27 promises changes that could affect households, businesses, investors, and consumers alike. Alongside relief measures, there are stricter tax enforcement, with new digital monitoring tools, and higher duties on luxury imports. After weeks of debate and several key amendments, Parliament has finally signed off on the country’s economic roadmap for the year ahead. National Assembly approved upcoming fiscal year’s budget on Tuesday after opposition lawmakers staged a dramatic walkout. The protest followed a fiery speech by Opposition Leader Mehmood Khan Achakzai, who strongly criticised the government and accused it of undermining democratic institutions. Budget 2026 after changes, is said to be the most wide-ranging fiscal plan in recent years, combining tax relief for salaried individuals and businesses, major increases in development spending, expanded social welfare programs, incentives for exporters and the IT sector, and an aggressive push toward digital governance and tax enforcement. There are ambitious economic targets, including GDP growth rate of 4% and inflation of 8.2%, while tasking the Federal Board of Revenue (FBR) with collecting Rs. 15.264 trillion in taxes, representing a 17.6% increase over the previous FY. Total federal expenditures have been set at Rs. 18.771 trillion, with debt servicing continuing to dominate public finances. Nearly Rs. 8.054 trillion will be spent on interest and debt repayments alone, meaning a substantial portion of government revenue will continue to be consumed by obligations accumulated over previous years. Defence spending has also seen a significant increase, reaching Rs. 3 trillion, reflecting the government’s prioritization of national security amid regional and global uncertaintie