FY26-27 Budget: Government Relief Measures Announced

The government has unveiled its budget proposals for the upcoming fiscal year (FY26-27), including several relief measures for the public. Key announcements include an expansion of the income support program for vulnerable populations and reduced taxes for individuals earning over Rs183,000 monthly. Federal employees will see a 7% salary increase, while pensioners will receive a similar 7% rise. The federal minimum wage is set to increase by 10%. Despite these measures, real gains may be minimal due to an anticipated 8.2% inflation rate. The Benazir Income Support Programme budget is boosted by 17%, and the Kafalat program will extend to 12 million families. Educational scholarships are planned for 9.2 million children. The PM Apna Ghar scheme receives an additional Rs71 billion for subsidized housing loans. Tax rates for higher income brackets are adjusted downwards, and the income tax surcharge on high-earners is proposed for removal. Business tax reforms include abolishing the super tax for certain income levels and reducing it for others, with specific industry exemptions. The real estate sector anticipates relief through a halved withholding tax, and Capital Value Tax on declared foreign assets is proposed for abolition.

This budget outlines the government's fiscal priorities and economic relief strategies, impacting various segments of the population and business sectors.