2026-27: Budget: Moving towards competitiveness (opens original article in a new tab)

The 2026-27 budget outlines reforms to enhance Pakistan's economic competitiveness through tax system modernization, reduced rates, and sector-specific incentives.

• The 2026-27 federal budget focuses on tax base broadening, import tariff reforms, and IT sector incentives.
• Income tax rates were reduced, with higher thresholds for top brackets and abolition of super tax for high earners.
• Tax administration is transitioning to a technology-driven, data-led model with digital audits and automated compliance mechanisms.