Pakistanis could face more than Rs. 1.1 trillion in new taxes and revenue measures in the upcoming FY2027 budget as the federal and provincial governments move to meet fiscal commitments agreed with the International Monetary Fund.
According to reports, the federal government has asked all four provinces to collectively generate over Rs. 400 billion in additional taxes during the next fiscal year as part of ongoing IMF-backed reforms.
Under the proposed framework, Sindh is expected to contribute around Rs. 200 billion in additional revenue, followed by Punjab with Rs. 175 billion, Khyber Pakhtunkhwa with Rs. 45 billion, and Balochistan with nearly Rs. 20 billion.
The targets were reportedly discussed during a virtual meeting chaired by Finance Minister Muhammad Aurangzeb with provincial finance ministers as part of budget preparations for FY2027.
In addition to provincial taxation measures, the federal government is expected to raise another Rs. 430 billion through new taxes and enforcement actions, while petroleum levy collections are projected to contribute an extra Rs. 260 billion.
The IMF-backed revenue plan is expected to focus on sectors including agriculture income tax, sales tax on services, property taxes, stamp duties, and registration fees. Officials said the IMF has repeatedly highlighted agriculture as one of Pakistan’s most undertaxed sectors despite contributing nearly one-quarter of the country’s economy.
Meanwhile, the Federal Board of Revenue has reportedly started sharing sales and income tax return data with provincial authorities to strengthen enforcement and expand the tax base.
Punjab has also informed the federal government that it plans to expand sales tax on services coverage to 40 major cities, while Sindh has been urged to improve tax collection from agriculture and real estate sectors.
The IMF has reportedly set a petroleum levy collection target of Rs. 1.727 trillion for FY2027, approximately Rs. 260 billion higher than the current fiscal year’s target.
The measures form part of broader efforts by Pakistan to maintain fiscal discipline and achieve a primary budget surplus target of 2 percent of GDP under the IMF programme.
