How much tax relief salaried class may get in budget under IMF pressure?

Pakistan’s tax relief plan for Budget 2026-27 is now expected to focus mainly on the salaried class. This shift comes after strong conditions and directions from the International Monetary Fund (IMF).

According to reports, the IMF has opposed broad-based tax reductions, which has significantly reduced the government’s fiscal flexibility. As a result, relief measures are now being concentrated on salaried individuals only.

The Federal Board of Revenue (FBR) has submitted a set of relief proposals to the prime minister for approval. After this review, the finance ministry will hold discussions with the IMF before June 10 for final clearance.

One of the key proposals includes reducing income tax rates for salaried people earning between Rs200,000 and Rs300,000 per month. This category includes around 550,000 taxpayers across the country.

Officials are also considering changes in higher salary slabs. These may include adjustments in tax rates and income thresholds for high-earning individuals.

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In addition, the government is reviewing possible revisions in corporate tax, super tax, and the 15 percent dividend withholding tax. These changes are still under discussion and not final yet.

Final decisions on the tax relief package will be taken after negotiations with the IMF are completed in the coming days. The outcome will decide how much actual relief salaried individuals receive in the new budget.

The main focus of Budget 2026-27 is shifting toward salaried people, but overall relief remains limited. IMF conditions are restricting the government from giving broad tax cuts.

If approval is granted, only middle-income salaried groups may see some benefit. High earners and businesses may not receive significant relief in this round.