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Preparations for Pakistan’s federal budget for the fiscal year 2026–27 have officially started as the Federal Board of Revenue (FBR) invited tax-related proposals from its field formations across the country. The move marks the first formal step toward shaping next year’s fiscal and taxation framework.
According to FBR officials, recommendations for amendments to customs laws are being sought by February 10. Formal letters have already been issued to chief collectors and director generals, directing them to submit detailed budget proposals.
The tax authority has instructed all field formations to clearly mention their name, proposed measures, justification for changes, and the expected impact on national revenue. Officials said this approach aims to ensure that policy decisions are grounded in on-ground realities rather than theoretical assumptions.
Sources within the FBR stated that the objective of this exercise is to collect practical and field-based input to help design realistic, effective, and revenue-positive tax measures for the upcoming fiscal year. The initiative reflects an effort to improve coordination between policymakers and tax administrators working at the operational level.
Meanwhile, the Ministry of Finance has established a dedicated Tax Policy Office to support the federal budget preparation process. The new office will play a central role in reviewing tax proposals and formulating overall tax policy for the 2026–27 budget.
A finance ministry spokesperson said that the upcoming budget will be prepared under the supervision of the Tax Policy Office to ensure better coordination, policy consistency, and data-driven decision-making, signaling a shift toward more structured and transparent fiscal planning.
