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CategoriesNews Budget Economy Tax

PM Shehbaz Signs Federal Budget 2026–27 Draft

ISLAMABAD: Prime Minister Shehbaz Sharif signed the Federal Budget 2026–27 draft on Friday after chairing a federal cabinet meeting in Islamabad. Finance Minister Muhammad Aurangzeb is set to present it before parliament the same day.

The budget carries a total outlay of Rs17.1 trillion, with a GDP growth target of 4.1 percent, an inflation projection of 8.4 percent, and an FBR tax revenue target of Rs15.267 trillion. New tax measures between Rs660 billion and Rs700 billion are also expected.

Addressing the cabinet, the PM acknowledged that taxation would create hardship but described it as necessary to correct long-standing economic imbalances. He noted that inflation had fallen from 38 percent over the past two years and the policy rate had dropped from 22.5 percent to 11 percent, though regional instability from the Gulf crisis had slowed further progress.

Key Tax Proposals

The salaried class may receive up to Rs50 billion in income tax relief through revised slabs and reduced rates on monthly earnings above Rs183,400. A 2 percent cut in the super tax rate and removal of the 1 percent advance income tax on exporters are also under consideration.

For real estate, withholding tax on property purchases for filers may drop from 1.5 percent to 0.25 percent, while the seller tax could fall from 4.5 percent to 1.5 percent. The IMF has reportedly agreed in principle to support the property tax reductions. Non-filers are not expected to benefit.

The BISP quarterly stipend may rise from Rs13,000 to Rs14,500, with Rs838 billion allocated to the programme.

All four provincial governments endorsed the national development plan through the NEC ahead of the budget’s presentation. The PM also acknowledged support from coalition partners PML-N, PPP, MQM, IPP, BAP, and PML-Q in finalising the budget.

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Sources:

  • The Express Tribune
  • ARY News
  • Pakistan Observer
  • Pakistan Today
  • TechJuice
  • Bloom Pakistan
  • Daily Pakistan
  • Business Recorder
  • Pakistan Times
  • Lahore Real Estate
Unused Government Properties
CategoriesNews Developments Economy Property

Punjab Orders Audit of Unused Government Properties

LAHORE: The Punjab government has directed 12 public-sector institutions to compile and submit comprehensive details of vacant, unused, and underutilised state-owned residential and commercial properties as part of a broader strategy to achieve an ambitious revenue target of Rs500 billion for the upcoming fiscal year.

The directive was issued by the Housing, Urban Development and Public Health Engineering Department, which has contacted nine major development authorities across the province, including those operating in Lahore, Rawalpindi, Multan, Faisalabad, Sargodha, Bahawalpur, Gujranwala, Dera Ghazi Khan, and Koh-e-Suleman.

Additionally, the Ravi Urban Development Authority, the Punjab Housing and Planning Agency, and the Punjab Central Business District Development Authority have been included in the exercise.

According to the letter issued by the department, institutions are required to submit complete records not only of properties that remain vacant or underused, but also of state assets that have previously been sold, leased, auctioned, licensed, or otherwise utilised.

The scope of the survey further extends to identifying roads, corridors, and public areas with potential for commercialisation, accompanied by actionable recommendations for their possible use.

Each agency has been tasked with conducting a thorough assessment of land and property values within its jurisdiction, evaluating commercialisation prospects, and identifying concrete revenue-generation opportunities.

The institutions are also expected to prepare detailed action plans, complete with implementation timelines, to enable them to contribute meaningfully to their individually assigned revenue targets.

The initiative reflects the provincial government’s intent to activate dormant public assets rather than relying solely on conventional taxation measures to meet its fiscal obligations. By systematically cataloguing and monetising idle state properties, Punjab aims to create a sustainable and transparent mechanism for the utilisation of public resources.

Officials have indicated that the data collected through this exercise will form the foundation of a structured revenue mobilisation plan ahead of the next fiscal year.

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CategoriesNews Budget Economy Power/Energy Tax

From Solar to Stocks: Pakistan’s Budget 2026-27 Promises Tax Continuity

ISLAMABAD: The federal government has decided to maintain existing tax rates on solar panels, stationery items, and the stock market in the upcoming Budget 2026-27, providing relief to consumers and investors who had feared potential increases.

According to senior tax officials, the earlier proposal to raise sales tax on solar panels from 10 to 18 percent has been formally withdrawn. This decision is expected to sustain the momentum of solar energy adoption across Pakistan, particularly among households and small businesses increasingly reliant on renewable energy solutions amid persistent power outages.

Similarly, the proposed hike in sales tax on stationery items will not be pursued in the forthcoming budget. The move is likely to be welcomed by students, educational institutions, and the stationery trade, which had raised concerns about the impact on affordability of any such increase.

Stock market taxation will also remain unchanged, effective July 1, 2026, offering a degree of stability to investors and market participants who have been closely monitoring pre-budget policy signals.

On the income tax front, the government intends to raise the threshold for the highest tax slab for salaried individuals. Simultaneously, the surcharge currently levied on the highest income earners is set to be abolished, representing a structural adjustment aimed at rationalising the direct tax framework.

A significant development for the export sector is the likely abolition of the one percent tax on exports. Highly placed officials confirmed that this relief measure forms part of a broader exporter support package to be announced in the budget speech. The industry has long advocated for the reinstatement of the Final Tax Regime with a one percent turnover tax, calling for protection from undue regulatory pressure.

The tax status of the real estate sector, however, remains under deliberation and has not yet been finalised.

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Sources:

CategoriesNews Construction Developments Real Estate Urban Developments & Planning

Karachi’s Azeempura Flyover Set to Open After 100-Day Completion

KARACHI: Karachi is finally getting a new flyover. The Azeempura Flyover has been completed and will open to traffic within a week, Mayor Barrister Murtaza Wahab confirmed during a late-night inspection of the site.

The project was completed in 100 days, meeting a deadline set by Sindh Chief Minister Syed Murad Ali Shah. The main structure is fully built. Workers are now finishing the final touches, road surfacing, signage, and safety installations, before the bridge opens to the public.

The flyover connects Shahrah-e-Bhutto to the road leading toward Jinnah International Airport. This is one of Karachi’s most congested routes, and the new bridge is expected to ease traffic, especially during morning and evening rush hours.
The project was carried out by the Karachi Metropolitan Corporation (KMC) under the supervision of the Sindh government. Officials say this flyover is part of a larger plan to fix Karachi’s long-standing traffic problems. The city is also seeing work on signal-free corridors and road rehabilitation projects as part of the same drive.
Mayor Wahab confirmed the news on social media, saying the bridge construction is complete and the flyover will be opened for public use before the deadline.

For Karachi residents, this is welcome news. The city has struggled with severe traffic congestion for years, and infrastructure projects of this scale have often faced delays. Completing this one on time marks a rare and notable achievement for the city’s administration. The exact inauguration date has not been announced yet, but authorities expect it to be open within days.

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CategoriesNews Property Property Laws Real Estate Real Estate Investment

Lahore Bans Property File Trading From July 1, Only PLRA Certificates Will Be Valid

LAHORE: If you buy or sell property through a “file” in Lahore, your time is running out. Starting July 1, 2026, file-based property trading will no longer be allowed in any housing scheme across the city.

The Lahore Development Authority (LDA) announced the move on Monday. LDA Director General Tahir Farooq made it clear that this applies to both private and public housing schemes. No exceptions will be made.

From July 1, all plot transactions must be done through a property certificate issued by the Punjab Land Records Authority (PLRA). Think of it as a digital title deed official, traceable, and tamper-proof.

Each property certificate will carry a QR code. Scan it, and you instantly get all the details about that plot. No more confusion. No more disputed records.

Housing societies have until June 30 to migrate their records to PLRA’s digital system, called the Housing Societies Management System (HSMS). This is mandatory. Societies that fail to comply and are operating within LDA’s jurisdiction will face legal action.

To ease the transition, LDA and PLRA will jointly train private sector housing schemes on how to use the new system. Private schemes will also be able to issue their own green certificates and registrations through a dedicated digital portal.

At the meeting, representatives from ABAD, the Board of Revenue Punjab, and LDA all welcomed the move. They said digitising property records will build investor trust and bring much-needed transparency to Lahore’s real estate market.

For ordinary buyers and sellers, the message is simple: deal in certificates, not files or risk standing outside the law.

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Automate Income Tax Collection Using AI
CategoriesNews Tax

PM Shehbaz Orders FBR Pilot Project to Automate Income Tax Collection Using AI

ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday directed the launch of a pilot project for a proposed automated income tax collection system in the federal capital, Islamabad, marking a significant step in the government’s ongoing efforts to modernise Pakistan’s revenue infrastructure.

The directive was issued during a high-level review meeting chaired by the Prime Minister at the Prime Minister’s Office, attended by Finance Minister Muhammad Aurangzeb, State Minister for Finance Bilal Azhar Kayani, and other senior officials. The meeting conducted a detailed assessment of the Federal Board of Revenue’s (FBR) ongoing reform measures to make inland revenue collection more effective, transparent, and faceless.

Addressing the gathering, Prime Minister Shehbaz described the initiative as a milestone in the government’s broader reform agenda. He stressed that minimising human intervention and curtailing discretionary powers within the tax collection mechanism were urgent priorities, as they would directly reduce corruption and improve institutional accountability.

The proposed system is designed to leverage modern technology and artificial intelligence to identify under-declared income and assets by cross-referencing data across property, vehicle, and banking records. To further strengthen the framework, the meeting proposed establishing three dedicated wings: a National Faceless Audit Wing, a National Assessment Wing, and a Field Operations Wing, each intended to streamline and safeguard the integrity of the tax process.

The Prime Minister affirmed that the successful implementation of this system would not only boost national revenue but also foster greater transparency, fairness, and public trust in the taxation system. He reiterated the government’s commitment to continuing FBR reforms to comprehensively document the economy and meaningfully expand the tax net.

On a separate note, the Prime Minister commended provincial governments for their decisive action against illegal cigarettes, with additional tax collection from the sector projected to reach Rs40 billion this fiscal year.

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Federal Government Real Estate Management Authority
CategoriesNews Developments Economy Real Estate Urban Developments & Planning

NA Standing Committee Approves Bill to Establish Federal Government Real Estate Management Authority

ISLAMABAD: A National Assembly standing committee has formally recommended the creation of a dedicated Federal Government Real Estate Management Authority to oversee and optimise the management of state-owned properties across Pakistan.

The proposal, unanimously approved by the National Assembly Standing Committee on Cabinet Secretariat, has been forwarded to the National Assembly for full legislative passage.

The committee, chaired by Malik Ibrar Ahmad, convened to address longstanding concerns regarding the mismanagement and illegal occupation of government-owned land. Members highlighted that numerous federal properties remain either encroached upon or underutilised, failing to generate meaningful economic returns for the state despite holding considerable commercial value.

Malik Ibrar Ahmad underscored the gravity of the issue, noting that government-owned properties had been illegally occupied over extended periods. He cited the example of railway land recovered through intervention by the Standing Committee on Railways, noting that rapid urban expansion and commercial development have substantially increased the value of such assets in recent years.

The cabinet secretary informed committee members that the federal government holds an extensive portfolio of commercial, urban, and rural properties spread across the country. These assets are currently distributed among various ministries, divisions, and government organisations, resulting in fragmented oversight and widespread inefficiency. Previous efforts to improve returns from these holdings have largely yielded unsatisfactory outcomes.

The proposed authority would consolidate oversight responsibilities, managing, leasing, and supervising federal properties in accordance with government approvals, with a clear mandate to maximise economic utility.

In the same session, the committee approved several additional legislative proposals, including the Archival Material (Preservation and Export Control) Amendment Bill, 2026, the Abandoned Properties (Management) Amendment Bill, 2026, and the Oil and Gas Regulatory Authority (Amendment) Bill, 2026. Officials stated that these legislative measures collectively aim to strengthen governance, enhance administrative efficiency, and align legal frameworks with ongoing institutional reforms.

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CategoriesNews Budget Economy

Pakistan Budget 2026-27 May Be Delayed to June 10 Amid $7 Billion IMF Talks

ISLAMABAD: Pakistan’s federal budget for fiscal year 2026-27 is unlikely to be presented on June 5, as previously expected, because some fiscal measures are still being discussed with the International Monetary Fund.

According to Reuters, a government source and local media reported on Wednesday that the budget may now be presented on June 10. The source said the delay is mainly linked to unresolved matters with the IMF over fiscal space, including funds that provinces may need to give up for federal spending.

The government has not officially announced a reason for the possible delay. Pakistan’s finance ministry did not immediately respond to Reuters’ request for comment.

Despite the expected delay in the budget presentation, the parliamentary session scheduled for June 5 is still expected to take place. The session may allow the government and opposition to discuss budget-related issues before the formal presentation.

Pakistan is currently under a $7 billion IMF bailout program, which has helped stabilize the economy after a difficult financial period. Any delay in finalizing the budget reflects the importance of IMF approval in shaping Pakistan’s spending and revenue plans.

The upcoming budget is being closely watched by businesses, investors, and the public, as the government is expected to balance demands for economic relief with the need to meet revenue targets. Key sectors, including real estate and construction, are hoping for tax relief, but final decisions may depend on the outcome of continuing talks with the IMF.

The budget delay adds uncertainty at a time when Pakistan is trying to maintain economic recovery while managing pressure on public finances.

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CategoriesSpecial Report Construction Economy News Property Taxes Real Estate Real Estate Investment Tax

Pakistan Real Estate Sector Expects Major Tax Relief in Budget FY 2026-27

ISLAMABAD — Pakistan’s real estate and construction sectors are expecting major tax relief in the upcoming federal budget for fiscal year 2026-27, as the government considers proposals to reduce property-related taxes and revive investment activity.

The budget, expected to be presented on June 5, could bring significant changes for property buyers, sellers, investors, and overseas Pakistanis, according to industry representatives and media reports.

Government Signals Possible Relief in Real Estate Taxes

The real estate sector has been under pressure for several years due to higher taxes, rising costs, and a slowdown in property transactions. Industry stakeholders say the sector is directly linked with more than 80 other industries, including cement, steel, paint, glass, electrical fittings, tiles, transport, and construction services.

They argue that when real estate activity slows down, many connected businesses also suffer. For this reason, the sector is urging the government to reduce taxes in the upcoming budget to encourage buying, selling, and construction activity.

Prime Minister Shehbaz Sharif has also reportedly hinted at relief measures for the construction and real estate sectors during meetings with business representatives. These signals have increased expectations that the government may announce major policy changes in the new budget.

Key Tax Demands from the Sector

Real estate stakeholders are demanding reductions in withholding tax, capital gains tax, and rental income tax. They say the current tax structure has discouraged investment and reduced the number of property transactions.

Abolition of Section 7E

One of the sector’s main demands is the abolition of Section 7E of the Income Tax Ordinance. Section 7E imposes tax on deemed income from immovable property. In simple terms, it allows tax to be charged on an assumed income from property, even if the property owner has not actually earned rent from it.

Industry representatives say this discourages documented investors and creates an unfair burden on property owners. They have also called for property-buying and selling taxes to be reduced to 1%.

Business leader Kashif Chaudhry has said that Pakistan’s economy cannot fully recover without restoring activity in the real estate market. He argued that reducing taxes would increase transactions and ultimately help the government collect more revenue.

FBR Proposals Under Consideration

According to reports, the Federal Board of Revenue has prepared proposals to provide relief to the real estate sector. These proposals include reducing taxes on property purchases and sales, while also making investment easier for overseas Pakistanis and local investors.

Under one reported proposal, withholding tax on property purchases for tax filers could be reduced from 1.5 percent to 0.25 percent. Tax on property sales may also be reduced from 4.5 percent to 1.5 percent.

The government has also reportedly briefed the International Monetary Fund on these proposed tax reductions. This is important because Pakistan’s budget decisions are closely linked with IMF targets on revenue collection and fiscal discipline.

FPCCI Calls for Wider Reform

The Federation of Pakistan Chambers of Commerce and Industry has also supported tax relief for the real estate and construction sectors. FPCCI President Atif Ikram Sheikh has said that taxes imposed under Sections 236C and 236K are expected to be abolished.

He has also called for the removal of Section 7E, describing it as a long-standing demand of the business community.

The FPCCI has further proposed the creation of a Real Estate Regulatory Authority, known as RERA, in Pakistan. The chamber says such an authority would help regulate the sector, improve transparency, and protect investors.

In its shadow budget proposals, FPCCI has suggested reducing real estate taxes to a uniform 0.5 percent. The chamber believes this would encourage investment and help revive economic activity.

Experts Urge Balanced Policy

Tax experts and economists say the government should reduce taxes that discourage transactions, but they also warn that reforms must be carefully designed.

Experts Huzaima Bukhari, Dr. Ikramul Haq, and Abdul Rauf Shakoori have argued that Pakistan’s tax system needs broader reform. They say the country should reduce pressure on productive economic activity while improving taxation of idle and speculative assets.

Their view is that transaction taxes should be rationalized, but the government should also modernize land records, improve property valuation systems, and tax speculative urban land more effectively.

Other analysts have warned that Pakistan’s room for tax relief may be limited because of IMF conditions. If the government reduces taxes in one area, it may need to raise revenue from another area to meet fiscal targets.

Overseas Pakistanis Seen as Key Investors

The proposed relief is also being viewed as important for overseas Pakistanis. Industry representatives say lower taxes and simpler procedures could encourage Pakistanis living abroad to invest more in property and construction projects.

They believe this could bring more foreign exchange into the country through remittances and investment. For Pakistan, where remittances play an important role in supporting the economy, this could be a major benefit.

FPCCI Senior Vice President Saqib Fayyaz Magoon has also said that real estate can help attract more foreign exchange if investors are given confidence and clear rules.

Revenue Challenge for the Government

The government faces a difficult policy choice. On one hand, lower taxes may increase property transactions and revive economic activity. On the other hand, the government must also meet revenue targets and satisfy IMF conditions.

FBR data shows that withholding tax collection increased during the current fiscal year. However, higher taxes have also contributed to a decline in capital gains tax collection compared to the previous year. This shows that while higher rates may increase some tax collections, they can also reduce overall market activity.

Real estate stakeholders argue that lower rates could bring more people into the documented economy and increase tax collection through higher transaction volume.

Budget Could Mark Turning Point

The upcoming budget is being closely watched by builders, developers, property buyers, sellers, and overseas investors. If the government accepts key proposals, the real estate sector could receive one of its biggest relief packages in recent years.

However, experts say tax cuts alone will not be enough. They believe the government must also improve regulation, digitize land records, update property valuation systems, and discourage speculative investment in idle land.

For now, the sector is waiting for the June 5 budget announcement. The final decision will show whether the government is ready to make a major policy shift for real estate and construction, or whether fiscal pressure will limit the scale of relief.

References

Bukhari, H., Haq, I., & Shakoori, A. R. (2026, May 15). Budget 2026–27 & fiscal justice. Business Recorder. https://www.brecorder.com/news/40421212

Bukhari, H., Haq, I., & Shakoori, A. R. (2026). Budget FY27: Out of the box solutions. Business Recorder. https://www.brecorder.com/news/amp/40422269

Federation of Pakistan Chambers of Commerce and Industry (FPCCI). (n.d.). Section 7E of Income Tax Ordinance should be abolished: Atif Ikram Sheikh. FPCCI Official Website. https://fpcci.org.pk/section-7e-of-income-tax-ordinance-should-be-abolished-atif-ikram-sheikh/

Khan, Z. A. (2026, June 1). Real estate sector seeks major tax relief in the budget. SAMAA TV. https://www.samaa.tv/2087351329-real-estate-sector-seeks-major-tax-relief-in-budget

Khyber News. (2026, June 1). Pakistan Federal Budget 2026-27 analysis raises questions over inflation, taxes, and IMF influence. Khyber News. https://khybernews.tv/pakistan-federal-budget-2026-27-analysis-raises-questions-over-inflation-taxes-and-imf-influence/

Pakistan Observer. (2026, June 1). Budget 2026–27: Big relief expected for property buyers, sellers in Pakistan. Pakistan Observer. https://pakobserver.net/budget-2026-27-big-relief-expected-for-property-buyers-sellers-in-pakistan/

Pakistan Observer. (2026). FPCCI unveils Pakistan’s first shadow budget for 2026-27. Pakistan Observer. https://pakobserver.net/fpcci-unveils-paks-first-shadow-budget-for-2026-27/

Siddiqui, S. (2026, June 1). Major tax relief expected for real estate in Budget 26-27. Bloom Pakistan. https://bloompakistan.com/major-tax-relief-expected-for-real-estate-in-budget-26-27/

Talreja, S. (2025, June 11). In Pakistan targets passive incomes, foreign e-commerce in a push for a $50 billion tax haul. Arab News. https://www.arabnews.com/node/2604103/amp

TechJuice. (2026, June 1). Major property tax relief likely in Pakistan Budget 2026-27. TechJuice. https://www.techjuice.pk/major-property-tax-relief-likely-in-pakistan-budget-2026-27/

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CategoriesNews Construction Developments Real Estate Urban Developments & Planning

Peshawar Road Underpass Project Stalls as Monsoon Deadline Looms

RAWALPINDI: The Punjab Communication and Works (C&W) Department has yet to break ground on three planned underpasses along Peshawar Road, with the monsoon season now less than a month away.

The underpasses, to be built at Race Course Park, Army Graveyard, and Chairing Cross, are central to a 25-kilometre signal-free corridor linking the Islamabad Expressway to Motorway Chowk. Once operational, the corridor aims to cut travel time between the two points to 15–20 minutes.

While the GPO Chowk interchange was completed last year and the Kutchery Chowk remodelling wrapped up in May, formal construction on the three remaining structures has not commenced. Completion is now projected in the next fiscal year.

Officials attribute the delay to ongoing preparatory work. The executing agency is prioritising drainage infrastructure and service road construction before excavation begins, so that monsoon rains do not disrupt the project mid-course.

Formal digging is expected to begin within one to two weeks, after which completion is estimated at two months. Traffic police have been asked to prepare a revised traffic management plan, and the Rawalpindi Cantonment Board has been directed to carry out patchwork on designated alternative routes.

On the utility front, Executive Engineer Qamar Saqib of the Punjab Highway Department confirmed that the relocation of Sui gas pipelines, telephone cables, and electricity infrastructure along the Race Course to Qadir Motors stretch has been completed.

Construction experts, however, warn that excavation during monsoon rains risks waterlogging in open trenches, potential rework, and restricted use of heavy machinery, all of which could extend timelines considerably.

Whether authorities can deliver within their stated window remains an open question for the thousands of commuters dependent on this corridor daily.

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