Federal cabinet meets today to approve Budget 2026-27 proposals

ISLAMABAD: A special meeting of the federal cabinet has been called today to approve the budget proposals for the fiscal year 2026-27.

According to the details, Prime Minister Muhammad Shehbaz Sharif has called a special meeting of the federal cabinet at Parliament House today at 2 pm before presenting the federal budget for the fiscal year 2026-27.

The final proposals and documents of the budget for the next fiscal year will be approved in this important meeting.

Sources said that the final decision on the increase in salaries and pensions for government employees will also be taken at the same cabinet meeting, where the proposal to increase employees’ salaries by up to 10 percent is expected to be ratified.

According to Minister for Parliamentary Affairs Tariq Fazal Chaudhry, the federal budget will be presented in the National Assembly at 3 pm today, and in the Senate at 5 pm. Federal Finance Minister Muhammad Aurangzeb will deliver the budget speech.

Tariq Fazal Chaudhry said that the PML-N and all allied parties will participate fully in the budget meeting, and he also urged the opposition to play a positive, democratic role in the country’s interest.

According to sources, the total budget for the next fiscal year is likely to be around Rs 18,000 billion.

The budget is expected to provide income tax exemption to the salaried class, and there is also a possibility of a reduction in super tax, however, there will be no reduction in corporate income tax.

In addition, due to the reduction in duty on makeup products, blush powder, mascara, shampoo, and soap, these items are likely to become cheaper, while electric vehicles, hybrid, and plug-in hybrid vehicles may become expensive.

It is proposed to increase the climate levy on petroleum products from Rs 2.5 to Rs 5 per liter.