Budget 2026-27 | Govt Employees Protest in Islamabad | 3 PM News Headlines | 12 June 2026

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The federal government is set to present its third budget today (Friday), with a range of tax proposals prepared ahead of the announcement.

Measures for salaried individuals and documented businesses are expected to form a key part of the budget. On the instructions of Prime Minister Shehbaz Sharif, relief for salaried taxpayers is likely to be included.

Sources said the International Monetary Fund (IMF) has allowed relief for the salaried class in the budget. Significant progress was also reported during the final round of budget-related talks with the IMF.

A new fixed tax scheme for traders is expected to be announced, while proposals have also been prepared to grant special incentives to the agriculture and housing sectors.

For housing finance, a single-digit interest rate facility for up to 10 years is expected to be introduced.

The budget may also bring price reductions for cosmetics, including face powder, mascara and shampoo. However, electric vehicles, hybrid vehicles and luxury imported cars are expected to become more expensive, according to sources.

A proposal has been prepared to reduce the super tax, while the corporate tax rate is expected to remain unchanged.

Sources said the government is considering ending tax exemptions currently available to the former FATA region.

A new tax model for retailers, described as a faceless digital tax system, is also expected to be introduced.

The IMF has stressed the need to generate alternative revenue in order to provide relief to salaried taxpayers.

The prime minister is expected to approve the proposed incentives during a special meeting of the federal cabinet today.

According to Ministry of Finance sources, salaried individuals may receive relief of at least 10 per cent or more. A reduction in income tax rates on salaries could affect revenue by up to Rs50 billion.

Sources said income tax slabs for salaried taxpayers will be revised in the new budget, while various proposals for income tax relief will be presented before the federal cabinet.

For the next financial year, the government has decided not to launch new development projects, according to sources. Priority is expected to be given only to projects of strategic importance, including defence, internal affairs and water resources


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