IMF Approval Awaited on Tax Relief for Salaried Class in Budget 2026-27

The federal government has proposed tax relief measures for salaried individuals in Budget 2026-27, aiming to ease the burden of inflation and rising living costs. The proposal includes lower income tax rates and revised tax slabs, particularly for middle-income earners.

The relief package is currently under review by the International Monetary Fund (IMF). As Pakistan remains under an IMF-supported economic programme, any measure that could reduce government revenue must be approved to ensure fiscal and revenue targets remain on track.

Government officials are optimistic that the IMF will approve the proposal before the budget is finalized. If approved, the new tax measures will come into effect from July 1, 2026, providing relief to millions of salaried taxpayers across the country.