The government has presented the Pakistan budget 2026-27, announcing a 7 percent increase in salaries for government employees and a 7 percent rise in pensions, along with a series of tax relief measures and development allocations worth over Rs18.7 trillion.
Finance Minister Muhammad Aurangzeb, while presenting the budget in the National Assembly, said the government remains committed to supporting salaried individuals and retirees through targeted relief measures.
Under the Pakistan budget 2026-27, the minimum wage has also been increased by 10 percent, while tax relief has been introduced for four income slabs of salaried individuals.
The minister announced revised income tax rates for salaried persons, along with the removal of a 9 percent surcharge, providing additional financial relief to middle-income earners.
He also proposed a reduction in super tax across multiple income brackets while maintaining higher rates for financial institutions, oil and gas companies, and fertilizer sectors.
In addition, the budget includes significant relief in property transactions, reduction in withholding taxes, and incentives for IT exports, along with continued support for electric vehicles and green transport initiatives.
On the development side, major allocations have been made for infrastructure, water projects, housing schemes, education, and healthcare under the Pakistan budget 2026-27 framework.
The finance minister said the overall fiscal strategy aims to stabilize the economy, reduce the deficit, and support sustainable growth while balancing relief measures and revenue generation.
