Pakistan’s federal budget for fiscal year 2026-27 will be presented to Parliament today by Finance Minister Muhammad Aurangzeb. The budget includes new tax measures projected to generate between Rs660-700 billion in revenue. While salaried individuals earning between Rs230,000 and Rs341,000 monthly are expected to receive tax relief, those earning between Rs100,000 and Rs183,000 may see no changes. The government aims to broaden the tax base by incorporating small traders and shopkeepers through the ‘Fixed Tax Asaan Scheme’ and is considering easing remittance restrictions for overseas Pakistanis. Recent negotiations between the ruling PML-N and PPP resulted in an agreement to reduce development spending to address an Rs800 billion revenue shortfall. Prime Minister Shehbaz Sharif has emphasized efforts to integrate the informal economy into the tax system.