Islamabad: The total volume of the federal budget for the upcoming fiscal year 2026-27 is likely to be kept at more than Rs 17,000 billion.
The IMF has been assured of taking additional tax measures worth Rs 860 billion in the federal budget for the upcoming fiscal year, while under pressure from the IMF, a decision has been taken in principle to stop subsidies on petrol and diesel.
According to sources, the IMF has suggested that an additional Rs 2,000 billion be collected under GST.
According to sources, the target of tax collection is expected to be Rs 7,000 billion in the first 6 months of the next fiscal year and Rs 15,267 billion by June 2027.
Sources said that an additional burden of Rs 430 billion is likely to be imposed on the public in the next budget. Rs 215 billion will be additional tax and the remaining 215 billion will be collected through audit and strict supervision. The four provinces will also impose new taxes of Rs 430 billion.
Sources further said that Rs 1727 billion will be collected as petroleum levy, which is Rs 260 billion more than the current fiscal year. To provide relief to any sector, the burden will be put on other sectors.
Despite promises to the IMF, the government has failed to collect tax on agricultural income. The share of the agricultural sector in the economy is about 25 percent and tax collection is only 0.3 percent.
Moreover, according to a report, the federal government has assured the IMF to accelerate the privatization of government institutions, and also shared a plan to end tax incentives of special economic zones by 2035.
According to sources, if privatization of distribution companies is not possible, a proposal to merge some companies is under consideration.
The government has decided that 51 to 100 percent shares of IESCO, GEPCO and FESCO will be sold in early 2027.
Administrative control will also be transferred to the private sector. Progress is underway on the privatization of 27 government entities. It has also been revealed that there has been a delay in the appointment of a new financial advisor for the Roosevelt Hotel.