Pakistan, May 16 -- Pakistan's upcoming federal budget for 2026-27 is expected to introduce heavy taxation measures and subsidy cuts under commitments linked to the International Monetary Fund. Sources indicate the fiscal plan aims to expand revenue sharply, raising concerns over further inflationary pressure on consumers. The total budget size is projected to exceed Rs 17,000 billion.

Officials say Pakistan has agreed to additional tax measures worth Rs 860 billion as part of IMF-linked reforms. The global lender has also set an ambitious target of Rs 2,000 billion in extra GST collections. Moreover, these steps are part of broader fiscal adjustment requirements under the programme.

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