Budget 2026-27 prepared with great sincerity, says PM Shehbaz

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday said that the federal budget for fiscal year 2026-27 had been prepared with great diligence and sincerity, with the welfare and prosperity of the people placed at the forefront.

In a post on X, the prime minister expressed gratitude to Allah and said the government had worked hard to formulate a budget that prioritises the well-being of Pakistan’s citizens.

“Alhamdulillah, this budget has been prepared with great hard work and sincerity, and the welfare and prosperity of Pakistan’s great nation have been given the highest priority,” he wrote.

The federal budget for 2026-27 is set to be unveiled later today (Friday) by Finance Minister Muhammad Aurangzeb. The total outlay for the upcoming fiscal year is expected to be around Rs18 trillion.

According to budget proposals, government employees may receive a 10 percent increase in salaries, while the salaried class is expected to get relief through reductions in income tax rates.

Tax rates for individuals earning between Rs1.2 million and Rs2.2 million annually are likely to be lowered. The government is also considering a reduction in the Super Tax, although the Corporate Income Tax rate is expected to remain unchanged.

الحمدللہ اس بجٹ کو بہت محنت اور خلوص سے تیار کیا گیا ہے، اور پاکستان کی عظیم قوم کی فلاح و بہبود کو اولین ترجیح دی گئی ہے۔

— Shehbaz Sharif (@CMShehbaz) June 12, 2026

Several consumer products, including cosmetics, face powder, mascara, shampoo, and soap, may become cheaper due to proposed tax adjustments.

However, electric vehicles (EVs), hybrid vehicles, and plug-in hybrid vehicles are expected to become more expensive under the proposed budget measures.