Pakistan’s FY26-27 budget includes a series of relief measures aimed at mitigating the impact of expected 8.2% inflation. Federal employees will see a 7% salary increase, with pensions rising by the same amount, and the federal minimum wage increasing by 10%. The Benazir Income Support Programme receives a 17% budget boost to Rs838 billion, expanding coverage to 12 million families, alongside scholarships for 9.2 million children. The popular PM Apna Ghar housing scheme will receive Rs71 billion in funding for subsidized mortgages. Tax relief is proposed for individuals earning between Rs2.2 million and Rs7 million annually, with reduced tax rates and an increase in tax brackets from six to eight. High-earners will no longer be subject to a 9% income tax surcharge, but despite these measures, real gains are expected to be limited due to prevailing inflation.