National Economic Council meeting tomorrow, new budget expected to be Rs 1.71 trillion

The important meeting of the National Economic Council (NEC) chaired by the Prime Minister will be held on June 8. It will be attended by the Chief Ministers of all four provinces, Gilgit-Baltistan, federal ministers and the Prime Minister of Azad Kashmir.
According to sources, the Economic Survey can be presented on June 9.
The key estimates of the federal budget for the upcoming fiscal year 2026-27 are:

• Budget size: Rs 171 trillion
• Economic growth rate target: 4.1 percent
• Average inflation estimate: 8.4 percent
• Petroleum levy target: Rs 1727 billion
• Tax revenue target: Rs 15267 billion
• Non-tax revenue: Rs 2768 billion
• Federal PSDP: Rs 11 trillion
• Interest payment: Rs 7824 billion
• Defense: Rs 2665 billion

A 7 to 10 percent increase in salaries and pensions of government employees is proposed, while the allies are demanding a 15 percent increase. The final decision will be taken by the federal cabinet on June 10.
Other important proposals include:

• 10 to 30 percent capital gains tax on crypto trading
• Likelihood of abolishing tax exemption for former tribal areas
• New taxes worth Rs 220 billion
• Fixed tax scheme for traders (shopkeepers with annual sales of Rs 200 million will pay a fixed tax of Rs 25,000 and will get exemption from audit)
• IMF insists on increasing GST from 18 to 19 percent
• Proposal to make sales tax mandatory at retail price by including formula milk, ghee, cooking oil, tea leaves, sugar, etc. in the third schedule
• End of discount on CKD kits of electric vehicles and hybrid vehicles

All these proposals are likely to be included in the new budget.