Pakistan’s proposed budget for the fiscal year 2026-27 includes significantly increased penalties for non-compliance with tax regulations. The government aims to broaden the tax base and improve revenue collection through these stricter measures. Fines for tax evasion and underreporting will be substantially higher, impacting both individuals and businesses. The budget also proposes adjustments to income tax slabs, offering some relief to lower-income earners while increasing taxes for higher income brackets. Other key features include allocations for infrastructure development, particularly energy projects, and continued subsidies for essential commodities. The government projects a GDP growth rate of 3.5% and an inflation target of 12%. These measures are presented as crucial for stabilizing the economy and meeting international financial obligations.