BUDGET 2026-27: Govt balances relief and IMF diktat

In his third budget — and the fifth of the major coalition partners — the minister also proposed taxes on social media earnings, a fixed tax scheme for small traders and shopkeepers, a higher minimum tax rate for wholesalers and retailers, incentives for small electric vehicles and bikes, and barriers for luxury e-vehicles. Mr Aurangzeb said next year’s budget had been prepared with a clear strategy aimed at increasing productivity and promoting exports. To achieve this, incentives had been provided for export industries, increased agricultural productivity and facilitation of information technology. He said an important objective of the budget was to increase revenue through better tax compliance and enforcement, rather than increasing the burden on existing taxpayers. This would be done through new compliance and enforcement systems alongside the FBR’s restructuring. The minister announced a 7pc increase in salaries and pensions for all government employees and a 10pc increase in the minimum wage to Rs40,700 — a