Islamabad, Pakistan – Web Desk: Pakistan’s federal government is expected to introduce additional tax measures worth Rs860 billion in the upcoming 2026-27 federal budget under commitments made to the International Monetary Fund (IMF), according to official sources.
The total size of the next federal budget is likely to exceed Rs17 trillion, while the government has also taken a principled decision to end subsidies on petrol and diesel amid IMF pressure, sources said.
According to reports, the IMF has proposed that Pakistan collect an additional Rs2 trillion through the General Sales Tax (GST) system to strengthen revenue generation and fiscal stability.
Sources revealed that the Federal Board of Revenue (FBR) is expected to set a tax collection target of Rs7 trillion for the first six months of the fiscal year and Rs15.267 trillion by June 2027.
The upcoming budget may place an additional burden of Rs430 billion on the public. Out of this amount, Rs215 billion is expected to come through new taxes, while the remaining Rs215 billion may be generated through stricter audits and enhanced monitoring measures.
All four provinces are also expected to introduce new taxes worth Rs430 billion collectively, according to sources familiar with the negotiations.
Meanwhile, petroleum levy collections are projected to reach Rs1.727 trillion, approximately Rs260 billion higher than the current fiscal year. Officials indicated that relief provided to one sector could result in increased financial pressure on other sectors of the economy.
Despite commitments made to the IMF, the government has reportedly failed to effectively collect agricultural income tax. The agriculture sector contributes nearly 25% to Pakistan’s economy, but its share in tax collection remains around 0.3%.
In another major development, the federal government has assured the IMF that it will accelerate the privatization of state-owned enterprises. Authorities have also shared plans to gradually phase out tax incentives for Special Economic Zones by 2035.
Sources added that if privatization of electricity distribution companies remains unsuccessful, the government may consider merging certain companies. The government plans to sell 51% to 100% shares of IESCO, GEPCO, and FESCO by early 2027, including transferring administrative control to the private sector.
Progress is also reportedly underway on the privatization of 27 state-owned enterprises, while delays in appointing a new financial adviser for the Roosevelt Hotel project have also emerged.
