President summons Parliament budget session on June 5

President Asif Ali Zardari has summoned the budget sessions of Parliament on June 5 to begin deliberations on the federal budget for FY2026-27, according to a statement issued by the President’s House. 

The National Assembly session will commence at 5pm, followed by the Senate session at 6pm on the same day. The sessions have been convened under Article 54(1) of the Constitution.

The development comes amid ongoing budget discussions between Pakistan and the International Monetary Fund (IMF), which media reports suggest remained inconclusive after both sides failed to reach agreement on proposed tax relief measures for the salaried class and exporters, as well as revenue estimates required to achieve a primary surplus target of ₨2.8 trillion in the next fiscal year.

According to reports, Pakistan proposed reducing income tax rates for salaried individuals and abolishing the additional 1% minimum tax on exporters. The Federal Board of Revenue (FBR) estimated the cost of these measures at around ₨200 billion, although the IMF reportedly did not accept the projections.

Sources also indicated that the IMF questioned the reliability of government proposals aimed at generating an additional ₨430 billion in taxes to help achieve the FBR’s FY2026-27 tax collection target of ₨15.264 trillion.

Last week, the National Assembly Standing Committee on Finance and Revenue directed the Tax Policy Unit of the Ministry of Finance and the FBR to ensure that the upcoming budget focuses on sustainable economic reforms, fiscal transparency, improved governance and inclusive growth rather than short-term stabilisation measures.

The committee also expressed concern over continued reliance on indirect taxation and petroleum levies instead of broadening the tax base through sustainable revenue measures.

During a briefing, lawmakers were informed that Pakistan remained on a fragile stabilisation path despite signs of gradual economic recovery.

GDP growth for FY2026-27 is projected between 3.5% and 4.5%, while inflation returned to double digits, rising to 10.9% year-on-year in April 2026.