Updated 4 November 2026 Finance Act gazetted · 26 June Targeted implementation review · 4 Nov

Pakistan Federal Budget FY2026-27: The Business Brief.

This report translates the budget into plain English: where the money goes, who gets tax relief, who gets new tax pressure, sector-wise impact, and what is still unclear.

Main read: the 4 November review confirms faceless rules commenced on 15 October and covered returns were extended to 31 October, a date now past. Steel monitoring must be operational by 30 December. Final integration tax-credit conditions and October economic results are now included. The Finance Act and annual budget targets remain the baseline.

Finance Act & Implementation Update

The 14 October-4 November review adds five official documents covering audit commencement, the return-filing extension, steel monitoring, final integration tax-credit conditions and the October economic outlook. Latest findings appear first; earlier measures remain as dated context. This targeted update retains the Finance Act and annual budget targets as its baseline.

Gazetted Act · 26 Jun

Filing deadline and audit commencement

  • Circular 04, dated 15 October, further extended Tax Year 2026 income-tax returns to 31 October 2026 for persons originally required to file by 30 September whose deadline had moved to 15 October. The date in this circular has now passed. No later general extension was verified in this targeted review; this is not a deadline for every taxpayer or return. Circular 04
  • SRO 1828 brings Chapter XX of the Income Tax Rules into force for every person or case from 15 October 2026. It supplies the commencement notification required by rule 233, updating the earlier pending-commencement position. Commencement does not mean every taxpayer has been selected for an audit. Commencement

Steel monitoring and integration credit

  • STGO 29 requires covered registered steel melters, re-rollers and composite units, including toll, conversion and contract manufacturers, to install, integrate, test and operationalize approved production-monitoring systems at each facility and active line by 30 December 2026. The order takes immediate effect and includes production/dispatch reconciliation, authorized vendors and restrictions on unmonitored supplies. This installation deadline is separate from STGO 27 for other manufacturing sectors. Steel order
  • SRO 1904 finalizes rule 33U for the section 64D integration tax credit. Required equipment must be successfully integrated with FBR during the relevant tax year, directly and exclusively used for that integration, and supported by activation records and acquisition/payment evidence. Eligible investment includes purchase and one-time installation/integration costs; recurring support, maintenance, utilities, salaries, training and financing costs are excluded. General-purpose systems qualify only for a separately identifiable dedicated component. Claim in the integration year without duplicating expenditure. Credit conditions Eligible costs / claim

October economic results

  • The 29 October Economic Update reports July-September FY2027 FBR collection of Rs 3,086.2 billion, up 7.0% and Rs 33.2 billion above the quarterly target. September CPI eased to 10.3% year-on-year from 11.1% in August; July-September inflation averaged 10.2%. These are period outturns, not changes to the annual budget targets. The report also records a July-August overall fiscal surplus of 0.8% of GDP and primary surplus of 1.6%; those fiscal figures cover two months, not the full quarter. October outlook Inflation

Creator income and faceless proceedings

  • SRO 1641, dated 23 September, finalizes the special procedure for covered resident persons earning from social-media interaction with users in Pakistan. Minimum income is remuneration less expenses capped at 30% of revenue. Remuneration uses the higher of actual receipts and the prescribed view-based benchmark; the YouTube benchmark is Rs 195 per 1,000 views, with evidence allowed for lower receipts. Quarterly advance tax and a dedicated return declaration apply. This is an income-computation procedure, not a new flat withholding rate. Creator rules Advance tax / definitions
  • SRO 1665, dated 29 September, finalizes Chapter XX on faceless audit and assessment, replacing the 25 September draft. Covered cases use IRIS communications, Digital Identification Numbers and separate audit, assessment and quality-control functions. SRO 1828 subsequently notified commencement for every person or case from 15 October 2026. See the new commencement source below. Scope / commencement IRIS procedure

Factory transfers and steel tax credits

  • STGO 25, dated 28 September, confirms that factory-to-own-warehouse transfers under the same STRN do not require a digital tax invoice. Each consignment must carry the prescribed Stock Transfer Note; reconcile records monthly and retain them for six years. A warehouse with a different STRN requires the normal taxable-supply and digital-invoice treatment. Transfer rules Stock Transfer Note
  • STGO 26 adds 18 HS headings (Annexure-II entries 431-448) to the restricted input-tax adjustment list for steel melters/re-rollers, with immediate effect from 28 September. Check the product heading before claiming credits on the listed finished and semi-finished steel goods; hardship may be raised with the Commissioner-IR. This does not amend the separate electricity-tax rates or approved-entity lists. Steel credit restrictions HS headings

Earlier October measures and draft relief

  • Circular 03, dated 30 September, extends Tax Year 2026 income-tax returns originally due on 30 September to 15 October 2026. It applies to that filing group, not every taxpayer or tax return. Circular 04 subsequently extended this filing group to 31 October 2026; see the new extension source below. Return deadline
  • STGO 27, dated 7 October, requires registered manufacturers, including toll manufacturers, of packaged tea, specified household electronics, paper/paperboard, edible oil/ghee and leather (including tanneries and synthetic leather) to install production video surveillance by 15 October 2026. Manufacturers bear the cost, must use authorized vendors and retain recordings for at least two months. From that deadline, covered goods cannot leave the premises unless produced under an operational system. Scope / deadline Costs / dispatch rules
  • SRO 1751, also dated 7 October, separately notifies immediate electronic production monitoring for registered leather and paper/paperboard manufacturers under the Sales Tax Rules. Leather / paper notification
  • Draft SRO 1691, dated 6 October, proposes an IRIS Form ATL-U procedure for qualifying late-filing individuals to enter the Active Taxpayers' List without the surcharge, conditional on a six-month undertaking not to acquire property. Breach would withdraw the benefit. The document is a consultation draft; this review has not verified final implementing rules and does not treat the draft as an effective surcharge repeal. Draft only

Tax guidance and refund processing

  • FBR published income-tax Circular 02 on 8 September and sales-tax/FED Circular 01 on 11 September. These explain the Finance Act 2026; they do not replace it. Income tax Sales tax / FED
  • SRO 1498 adds four weekly checks after the initial eight validation cycles under rules 29(2) and 39F. Only amounts still uncleared or unverified then move to STARR processing. This changes refund timing, not the tax rate. Refund rules
  • STGO 22 adds five manufacturers to the Rs 5-per-unit electricity list, taking it to 36, effective immediately from 5 September. Separately, STGO 23 adds four corporatization successors on 16 September, taking that table to 23. STGO 22 STGO 23

Pension verification and employee allowances

  • The 18 September SOP replaces the 7 September version for covered federal defined-benefit pensioners. Proof of life is required at least every six months through NADRA channels, including Pak-ID; fixed March/September verification dates are abolished. Manual fallback arrangements remain available. Pension SOP
  • Banks ordinarily disburse pensions and cannot impose dormancy solely for missing proof of life. CGA/MAG instead place the ledger in suspense after six months without a valid life signal, suspending payment; valid verification restores it and releases arrears. Suspense / restoration
  • HEC-recognized degrees equivalent to M.Phil qualify for the Rs 2,500 monthly allowance from 17 July, subject to an equivalence certificate and prescribed conditions. The 3 September GPF resolution confirms 12.05% for FY2025-26. M.Phil allowance GPF resolution
  • The 7 September appointment memorandum extends the special-pay policy to contractual positions for covered federal civil servants selected through open competition in government-owned entities, subject to the stated deputation conditions. Appointment policy

Vehicle relief and economic update

  • SRO 1525, dated 13 September, immediately excludes locally manufactured hybrid electric vehicles up to 2,000cc from Table II of SRO 297(I)/2023. Other applicable sales-tax provisions still require checking; this is not a blanket exemption. Hybrid notification
  • August national CPI is 11.1% year-on-year, up from 9.2% in July, and 1.2% month-on-month. Urban inflation is 10.4% and rural inflation 12.2% year-on-year. The FY27 target remains an 8.2% annual average, a different measure. PBS August
  • The August Economic Update, published 31 August and added in the 19 September review, records July FY27 FBR collection of Rs 820.9 billion, up 8.4%, and FY26 large-scale manufacturing growth of 4.98%. These are outturns, not revisions to FY27 targets. August outlook

What is now official

  • The Finance Act 2026 is Act No. XLIII of 2026, published in the Gazette of Pakistan, Extraordinary, Part I, on 26 June 2026. Gazette p.1
  • It received presidential assent on 26 June 2026 and generally comes into force on 1 July 2026 unless a provision says otherwise. Gazette p.2
  • The local Gazette copy remains the offline legal source; FBR's online Finance Act mirror links the same official text without storing a second 40MB copy. FBR PDF

Budget books and releases

  • Finance Division's budget books now support the headline spending, receipts and appropriation figures directly. Budget Brief p.8 ABS p.3 Demands p.3
  • The 1 July release strategies set quarterly release rules for development and recurrent budgets; they are operating controls, not tax-law changes. Dev release p.1 Recurrent release p.1
  • FBR's Tax Year 2027 withholding-tax rate card is now available for ATL/non-ATL rate checks. It is a reference aid, not a legal instrument; the amended Income Tax Ordinance prevails if they conflict. TY2027 rate card
  • The provisional FY2025-26 consolidated fiscal results show a 2.6%-of-GDP deficit and 2.9% primary surplus. Federal tax revenue was Rs 13.010413T, making the Rs 15.264T FY27 target about 17.3% higher. These are prior-year actuals, not revised FY27 targets. Fiscal results

New relief in the passed version

  • Imported-phone tax may be paid in instalments within the financial year. Committee p.5
  • Any Pakistan-registered airline can receive the aircraft/parts import or lease exemption from 1 July 2027. Committee p.5
  • Super tax does not apply where realized export proceeds exceed 80% of turnover. Committee p.12
  • Qualifying private-equity and venture-capital funds get an income exemption when at least 90% of adjusted accounting income is distributed. Committee p.11

Rates and operating rules changed

  • CBU EV FED tiers move to USD 75,000 and USD 110,000; imported 2,000cc-3,000cc and above-3,000cc vehicle FED becomes 86% and 92%. Committee p.14 p.15
  • Life-insurance and family-takaful payouts become exempt after four years; payouts after one year but before four years are listed at 10%. Committee p.10
  • Expense disallowance for failure to install required electronic resources is reduced from up to 5% to 3%. Committee p.6
  • Approved in-house use of white spirit and solvent oil can receive a conditional FED exemption. The 1% coal value-addition rate now has an operating order requiring registered importers, direct exclusive supply to a NEPRA-licensed coal IPP, supporting contracts, records and audit compliance. Gazette p.73 STGO 9/2026
  • STGO 17 amends the small-confectionery printing concession: where individual wrappers cannot practically carry the information, packages may contain up to 250 pieces, each priced at no more than Rs 10 and weighing no more than 10 grams. Permanent retail-price and sales-tax printing and the other STGO 8 requirements still apply. STGO 17
  • STGO 19 replaces STGO 11 Annexure-A from 1 July 2026. Local manufacturer supplies use value of supply; covered imports use 130% of the customs value inclusive of customs duties and FED. The retailer pays tax on retail value, and both supplier and retailer must meet the stated digital integration, POS and digital-invoice conditions. Revised matrix
  • STGO 10 provides the time-limited iron/steel NTN/STRN transition. STGO 12 lists the first eight successors and STGO 13 corrects one record; STGO 18 adds seven, STGO 21 adds four and STGO 23 adds four, bringing the successor list to 23. This is separate from the 36 taxpayers in the electricity-tax list after STGO 22. STGO 23 STGO 22 STGO 18 STGO 21
  • SRO 1245 implements electricity-based sales tax for steel units from 1 July: Rs 30 per unit for local-scrap users, Rs 5 for qualifying integrated users with more than 70% imported/EFS scrap, and Rs 35 for captive/self-generated power. STGO 16 supersedes STGO 14; STGO 22 adds five taxpayers to its initial 31, taking the list to 36 in the 19 September review, with immediate effect for those additions. STGO 22 SRO 1245/2026 STGO 16/2026
  • STGO 20 provides risk-based sales-tax registration: complete low-risk applications should be approved within three working days as far as practicable; deficiencies must be specified within seven days. Manufacturer association certification assists verification but does not replace legal checks or grant immunity. Registration rules
  • SRO 1166 already notifies a voluntary small-shopkeeper procedure for Tax Year 2026: eligible individuals with turnover up to Rs 200m pay 1% of gross turnover, with cash payment of at least Rs 25,000 after withholding adjustments. Multi-shop owners, Tier-1 retailers, jewellers and professionals are excluded. Shopkeeper rules
  • SRO 1413, dated 19 August, brings the Independent Case Scrutiny Committee (Customs) Rules into force immediately. Committees review proposed higher-court litigation and pending cases; this is a legal-process reform, not a change in tariff rates. Customs scrutiny rules

Pay, pensions and spending controls

  • BPS-2026 replaces BPS-2022 from 1 July. A separate taxable 7% Ad-hoc Relief Allowance applies to running BPS-2026 basic pay and is not pensionable. BPS p.1 Relief p.2
  • Federal conveyance allowance rises 50%, and existing disparity-allowance recipients receive 15% of 30 June 2022 basic pay. Conveyance DRA
  • Baseline pensions rise 7%, while FY2026-27 austerity controls continue across federal ministries, attached departments, SOEs, statutory bodies and regulators. Pension Austerity
  • Finance Division clarified that existing Ad-hoc Relief Allowance-2023 and 2024 amounts remain frozen, while new entrants receive notional rates based on minimum BPS-2022: 35%/30% for 2023 and 25%/20% for 2024 across BPS 1-16/BPS 17-22. BPS clarification
  • Sixteen pension fund managers were listed on 2 August. The 11 August implementation notice requires focal persons, verified employee records and AGPR updates within 15 days of receipt for covered regular appointees from 1 July 2024. This operationalizes the contributory scheme; it does not replace the 7% increase for existing pensioners. Pension implementation
  • FY2026-27 Diyat is set at Rs 19,352,390, the value of 30,630 grams of silver; this is a statutory compensation benchmark, not a new budget allocation. Diyat
  • The 21 August notification sets a Rs 40,700 minimum gross salary for covered federal civil employees from 1 July, with the shortfall paid as taxable, non-pensionable Special Allowance. It is not a nationwide private-sector minimum-wage order. Salary floor
  • Revised GPF monthly subscriptions range from Rs 722 (BS-1) to Rs 17,605 (BS-22), deducted from August salary payable on 1 September 2026. The existing 3%/5%/8% rates apply to the mean of the relevant BPS-2026 scale, not each employee's running basic pay. GPF schedule Effective date
  • GPF mark-up for the completed FY2025-26 is 12.05%, compared with 12.46% for FY2024-25. This does not set an FY2026-27 return. GPF mark-up

Review scope: targeted review of five official documents issued between 14 October and 4 November 2026. This is not an exhaustive SRO/STGO inventory or a fresh employee-policy audit. The Finance Act and annual targets remain the baseline. Steel-entity counts retain their 19 September review date. September CPI and July-September revenue are taken from the October outlook; a later October CPI release was not audited. Final ATL-U implementing rules were not verified, so SRO 1691 remains labelled as a draft source.

Important correction: the introduced bill put retail-packed pesticides/insecticides in the Sales Tax Third Schedule. The committee-reported bill removed that pesticide entry, and the gazetted Act confirms the final Third Schedule list without that pesticide entry; existing product tax, heading and valuation rules still need product-level checking. Introduced p.35 Committee p.4 Gazette p.61
Growth / inflation
4.0% / 8.2%
Official GDP growth and average inflation targets. Radio note
Federal PSDP
Rs 1.000T
The federal development budget, separate from provincial and SOE development. Budget Brief p.8
BISP
Rs 838B
Budget-book allocation is about Rs 838b; programme targets still come from speech coverage. Budget Brief p.29

Target vs Actual: October Update

Revenue and inflation below use the 29 October economic outlook. Other cards retain their explicitly dated baselines. Quarterly revenue, monthly inflation and annual targets cover different periods and should be read accordingly.

Track monthly / quarterly
FBR revenue
Rs 3.086T / 15.264T
July-September collection / full-year target. Quarterly receipts rose 7.0% and exceeded the quarterly target by Rs 33.2b. This is not a full-year forecast. Revenue p.3
Inflation
10.3% vs 8.2%
September year-on-year CPI versus the FY27 annual-average target. September eased from 11.1% in August; July-September averaged 10.2%. Monthly inflation and an annual-average target are different measures. Inflation p.2
Tax expenditure
Rs 2.353T
Estimated revenue forgone through income-tax, sales-tax and customs concessions. Tax expenditure
Government guarantees
Rs 4.322T
Outstanding guarantees at end-March 2026 are a fiscal risk outside the headline budget. Guarantees
FY26 external close
-$0.14B / $4.6B
Current-account deficit / record IT exports; IT exports rose 20.6%. These are FY26 closing baselines, not FY27 target changes. July outlook
FY26 fiscal close
2.6% / 2.9%
Provisional consolidated deficit / primary surplus as shares of GDP. Compare separately with FY27 targets of 3.6% / 2.0%. Fiscal results

Where The Money Goes

Debt servicing dominates the plan. Development exists, but the federal budget is mostly current expenditure.

High confidence

Big spending blocks

Mark-up
42.9%
Defence
16.0%
Grants
14.3%
Pensions
6.2%
Subsidies
5.8%
Federal PSDP
5.3%

Plain-English diagnosis

  • Relief is targeted, not broad. Salary tax relief starts mainly from higher formal salaries, and business relief focuses on documented sectors.
  • Debt cost eats the room. Mark-up alone is nearly 43% of the total outlay.
  • IMF discipline still drives the frame. The budget keeps a 2% primary surplus target and 3.6% fiscal deficit target.
  • Execution matters more than speeches. FBR, provinces, customs, and PSDP release data will decide the real impact.

Sector-Wise Tabs

Each tab is written for quick office sharing. Tax items are grouped as reduced, removed, added, or still unclear.

Same-page tabs

Reduced

  • Salaried rates reduced for taxable income from Rs 2.2m to Rs 7.0m. Finance p.81
  • Super tax removed up to Rs 500m income and cut to 8% above Rs 500m, with sector exclusions. Salient p.7
  • Export proceeds tax collection reduced from 2% to 1.25%. Salient p.8
  • Foreign card advance tax reduced from 5% to 0.5%. Salient p.8
  • Super tax does not apply where realized export proceeds exceed 80% of total turnover. Committee p.12
  • Customs duties, ACD and RD are rationalized across many tariff lines; SRO 1063 and SRO 1064 provide the operative ACD/RD notifications, while the new First Schedule gives exact replacement CD rates for listed PCT codes. Salient p.1 SRO 1063 SRO 1064 First Sch p.1
  • Acetate tow FED is reduced from Rs 44,000/kg to Rs 10,000/kg. Salient p.13

Removed / exempted

  • The committee omitted the whole proposed Petroleum Levy/Climate Support Levy amendment clause; existing levy law remains. Committee p.2
  • Salaried surcharge provisions omitted. Notes p.8
  • Section 7E deemed income tax on immovable property omitted. Salient p.7
  • CVT on foreign movable/immovable assets proposed to be abolished. Salient p.7
  • Contraceptives and female sanitary pads/tampons added to exempt schedule. Finance p.39
  • Magazines, targeted shipping/refinery imports, and EV CKD extensions get relief. Salient p.4
  • Qualifying private-equity and venture-capital funds receive an income exemption when at least 90% of adjusted accounting income is distributed. Committee p.11

Added / higher

  • Social-media platform revenue: 5% withholding for ATL persons and 10% for non-ATL persons in the TY2027 rate card. Rate card p.9
  • FED Rs 80/litre remains on petroleum top naphtha, white spirit/MTT and solvent oil; the final Act includes a narrow in-house exemption for approved white spirit and solvent oil use. Gazette p.73 p.74
  • The retail-packed Third Schedule expansion remains, but pesticides/insecticides are removed from the proposal; plastic sheets/film/foil/tape remain, POS-integrated footwear gets a carve-out, and tableware is limited to retail sale. Committee p.4 Reported p.37
  • Committee vehicle FED: CBU EVs at 0%/30%/40% by USD 75,000 and USD 110,000 thresholds; imported 2,000cc-3,000cc and above-3,000cc vehicles at 86%/92%. Committee p.14 p.15
  • Life-insurance and family-takaful payouts after one year but before four years are listed at 10%; exemption begins after four years. Committee p.10
  • Minimum tax for distributors and wholesalers of specified sectors rises from 0.25% to 0.5%. Salient p.9
  • FBR digital integration, production monitoring, and penalty systems get tougher. Notes p.5
Tax area Old / previous FY2026-27 proposal Business meaning
Salaried tax slab 23%, 30%, 35%, 35% across affected higher slabs 20%, 25%, 29%, 32%; 35% starts above Rs 7.0m Relief for formal higher-income salaried workers, not a full lower-income overhaul.
Super tax 1%-7.5% up to Rs 500m; 10% above Rs 500m 0% up to Rs 500m; 8% above Rs 500m, except banks, E&P, fertilizer Meaningful relief for many companies, but not for excluded sectors.
Property sale WHT 236C 4.5%-5.5% 2.75% Lower cost for documented property sellers.
Property purchase WHT 236K 1.5%-2.5% Gazetted Act says 1.25% of fair market value Gazette p.58 The rate conflict is resolved; still include provincial charges, registration costs and transaction-profile checks.
Foreign card payments 5% 0.5% May reduce incentive to use informal channels for foreign payments.
Social media revenue No specific platform WHT regime in these terms 5% ATL / 10% non-ATL WHT on platform revenue. Rate card p.9 Content creators and agencies should expect bank/platform-level tax documentation.

Legal status

  • The final law is the Finance Act, 2026, Act No. XLIII of 2026, published in the Gazette of Pakistan Extraordinary, Part I. Gazette p.1
  • The Act received presidential assent on 26 June 2026. Gazette p.1
  • It generally comes into force on 1 July 2026, unless a provision gives another start date. Gazette p.2
  • FBR's Finance Act page provides an online mirror of the same official text; the local Gazette remains the sole offline copy. FBR PDF

Checks now resolved

  • Property purchase advance tax under 236K is confirmed at 1.25% of fair market value. Gazette p.58
  • The final Third Schedule list does not carry the introduced pesticide/insecticide/fungicide/herbicide entry; it does list insect sprays among broader household goods. Gazette p.61
  • The white spirit and solvent oil in-house carve-out is in the gazetted Act, with Form-L, quota and digital-invoice conditions. Gazette p.73 p.74

Still practical, not theoretical

  • Use the Gazette as the legal baseline. FBR has since issued a coal value-addition order and final marine-bunkering rules; other circulars, certificates and sector notices still determine day-to-day application. STGO 9/2026 SRO 1082/2026
  • Vehicle, aviation, banking, property and customs decisions still need exact section, PCT code, certificate or transaction-profile matching.
  • For quick office sharing, the older Finance Bill and committee PDFs are now history/context; the Gazette PDF is the final law text.

Household and employee relief

  • The 7 September appointment memorandum extends the special-pay policy to contractual positions for covered federal civil servants selected through open competition in government-owned entities, subject to the stated deputation conditions. Appointment policy
  • HEC-recognized degrees equivalent to M.Phil qualify for the Rs 2,500 monthly allowance from 17 July, subject to an equivalence certificate and prescribed conditions. The 3 September GPF resolution confirms 12.05% for FY2025-26. M.Phil allowance GPF resolution
  • Banks ordinarily disburse pensions and cannot impose dormancy solely for missing proof of life. CGA/MAG instead place the ledger in suspense after six months without a valid life signal, suspending payment; valid verification restores it and releases arrears. Suspense / restoration
  • The 18 September SOP replaces the 7 September version for covered federal defined-benefit pensioners. Proof of life is required at least every six months through NADRA channels, including Pak-ID; fixed March/September verification dates are abolished. Manual fallback arrangements remain available. Pension SOP
  • BPS-2026 replaces BPS-2022 from 1 July after merging the 2022 and 2025 ad-hoc relief allowances. Existing employees have a 30-day option; no response defaults to BPS-2026. BPS p.1 p.3
  • A taxable 7% Ad-hoc Relief Allowance applies to running BPS-2026 basic pay; it is not included in pension/gratuity or house-rent recovery. Relief p.2
  • Conveyance allowance rises 50%, and existing disparity-allowance recipients receive 15% of basic pay as at 30 June 2022. Conveyance DRA
  • Baseline pensions rise 7% from 1 July for federal civil, defence-paid, armed-forces and civil-armed-forces pensioners, with specified orderly-related benefits excluded. Pension
  • The 21 August notification sets a Rs 40,700 minimum gross salary for covered federal civil employees from 1 July, with the shortfall paid as taxable, non-pensionable Special Allowance. It is not a nationwide private-sector minimum-wage order. Salary floor
  • Revised GPF monthly subscriptions range from Rs 722 (BS-1) to Rs 17,605 (BS-22), deducted from August salary payable on 1 September 2026. The existing 3%/5%/8% rates apply to the mean of the relevant BPS-2026 scale, not each employee's running basic pay. GPF schedule Effective date
  • The 11 August implementation notice requires focal persons, verified employee records and AGPR updates within 15 days of receipt for covered regular appointees from 1 July 2024. This operationalizes the contributory scheme; it does not replace the 7% increase for existing pensioners. Pension implementation
  • FY2025-26 GPF mark-up is 12.05%; this is the previous fiscal year's fund return. GPF mark-up
  • Female sanitary pads/tampons and contraceptives: added to sales-tax exemption schedule in the Finance Bill. Finance p.39
  • Salaried taxpayers in higher bands get reduced rates, but the lowest brackets are mostly unchanged. Finance p.81

Social protection

  • BISP allocation: Rs 838 billion. Radio note
  • Kafaalat target: 12 million families. Radio note
  • Taleemi Wazaif target: 9.2 million children. Radio note
  • Income-tax exemption is extended to specified welfare and charitable entities including Pakistan Red Crescent Society, Shaheen Foundation, Dawat-e-Hadiya, Bahria Foundation and SIUT. Finance p.87
  • AJK, GB and newly merged KP districts receive current-expenditure allocations of Rs 146b, Rs 88b and Rs 95b respectively. Radio note

Good for formal business

  • SRO 1904 finalizes rule 33U for the section 64D integration tax credit. Required equipment must be successfully integrated with FBR during the relevant tax year, directly and exclusively used for that integration, and supported by activation records and acquisition/payment evidence. Eligible investment includes purchase and one-time installation/integration costs; recurring support, maintenance, utilities, salaries, training and financing costs are excluded. General-purpose systems qualify only for a separately identifiable dedicated component. Claim in the integration year without duplicating expenditure. Credit conditions Eligible costs / claim
  • STGO 26 adds 18 HS headings (Annexure-II entries 431-448) to the restricted input-tax adjustment list for steel melters/re-rollers, with immediate effect from 28 September. Check the product heading before claiming credits on the listed finished and semi-finished steel goods; hardship may be raised with the Commissioner-IR. This does not amend the separate electricity-tax rates or approved-entity lists. Steel credit restrictions HS headings
  • STGO 25, dated 28 September, confirms that factory-to-own-warehouse transfers under the same STRN do not require a digital tax invoice. Each consignment must carry the prescribed Stock Transfer Note; reconcile records monthly and retain them for six years. A warehouse with a different STRN requires the normal taxable-supply and digital-invoice treatment. Transfer rules Stock Transfer Note
  • Super tax relief lowers the burden for many companies outside excluded sectors.
  • Customs tariff rationalization can reduce input costs for manufacturers, but only if their exact PCT codes are covered and the statutory First Schedule rate is checked against any Fifth Schedule concession. First Sch p.1 Fifth Sch p.3
  • Specialized construction vehicles get customs duty reduction from 20% to 10%. Salient p.1
  • Tax credit equal to 10% of investment in electronic resources for FBR integration supports digital compliance. Salient p.8
  • Export-oriented businesses above the 80%-of-turnover proceeds test avoid super tax, while qualifying private-equity and venture-capital funds get a conditional income exemption. Committee p.11 p.12
  • SRO 1498 adds four weekly checks after the initial eight validation cycles under rules 29(2) and 39F. Only amounts still uncleared or unverified then move to STARR processing. This changes refund timing, not the tax rate. Refund rules
  • Eligible iron and steel manufacturers use the STGO 10 transition to link old and new NTN/STRN records through 31 December 2026. The successor table reviewed through STGO 23 on 19 September has 23 entities; the Rs 5-per-unit electricity list remains a different list. STGO 23 STGO 18 STGO 21

Compliance changes

  • STGO 29 requires covered registered steel melters, re-rollers and composite units, including toll, conversion and contract manufacturers, to install, integrate, test and operationalize approved production-monitoring systems at each facility and active line by 30 December 2026. The order takes immediate effect and includes production/dispatch reconciliation, authorized vendors and restrictions on unmonitored supplies. This installation deadline is separate from STGO 27 for other manufacturing sectors. Steel order
  • Tier-1 retailer definition expands to retailers with turnover over Rs 200m. Finance p.15
  • Specified distributors, dealers, sub-dealers and wholesalers face minimum tax increase from 0.25% to 0.5%. Salient p.9
  • FBR can require electronic resources and real-time reporting, but the passed amendment reduces related expense disallowance from up to 5% to 3%. Committee p.6
  • The committee lets a person with turnover up to Rs 200m opt out of the fixed/final regime at return filing for Tax Year 2027 onward. Committee p.6
  • SRO 1166 already notifies a voluntary small-shopkeeper procedure for Tax Year 2026: eligible individuals with turnover up to Rs 200m pay 1% of gross turnover, with cash payment of at least Rs 25,000 after withholding adjustments. Multi-shop owners, Tier-1 retailers, jewellers and professionals are excluded. Shopkeeper rules
  • STGO 20 provides risk-based sales-tax registration: complete low-risk applications should be approved within three working days as far as practicable; deficiencies must be specified within seven days. Manufacturer association certification assists verification but does not replace legal checks or grant immunity. Registration rules
  • The proposal allowing FBR to share sectoral sales-tax return data among registered businesses is removed. Committee p.4

What may help chemicals

  • Customs duty is reduced on 92 industrial input tariff lines. The First Schedule gives exact replacement rates for selected chemical, paper, plastic, packaging, machinery and electrical PCT lines, so product mapping is essential. Salient p.1 BR note First Sch p.1 First Sch p.2
  • Additional Customs Duty is reduced from 6% to 4% on 449 tariff lines, from 4% to 2% on 2,107 lines, and eliminated on 569 lines. Salient p.1
  • Regulatory Duty above 20% is capped at 20% on 359 tariff lines, with further RD reductions across many other lines. Salient p.1
  • Fifth Schedule Part-II lists many APIs at 0% customs duty under DRAP-linked conditions; this helps pharma raw-material chains rather than every chemical importer. Fifth Sch p.55
Input relief possible PCT code required

What gets more expensive / tighter

  • Petroleum top naphtha, white spirit/MTT and solvent oil remain at FED of Rs 80 per litre. Approved in-house white spirit and solvent oil use can qualify for the gazetted conditional exemption; top naphtha cannot. Gazette p.73 p.74
  • Lubricating oil and base lubricating oils are listed at 5% FED ad valorem. Finance p.104
  • The exemption needs Form-L licences for importer and recipient, approved quota, in-house consumption, and the applicable sales-tax/digital-invoice conditions. Gazette p.73 p.74
  • E-liquid FED rises to Rs 16,500/kg, while the old 65% retail-price alternative is removed. Salient p.13
  • Fertilizer is excluded from super-tax relief; fertilizer distributors/wholesalers are also named in the minimum-tax increase to 0.5%. Finance p.89
Solvent cost risk Fertilizer excluded
Chemical-sector item Budget change Likely effect What to verify
Industrial raw materials / inputs First Schedule replacement CD rates plus ACD/RD rationalization across many tariff lines Possible lower or clearer import cost for covered inputs Exact PCT/HS code, statutory CD rate, Fifth Schedule concession and customs valuation
Pharma APIs for cancer/critical disease Many APIs listed at 0%; pharma excipients/chemicals have item-specific concessionary rates Targeted relief for local medicine production supply chains Whether the exact API/excipient appears in the Fifth Schedule list and is DRAP-approved
Naphtha / white spirit / MTT / solvent oil FED Rs 80 per litre; conditional in-house exemption for white spirit and solvent oil only General cost pressure remains, but qualifying Form-L industrial users may receive relief PCT code, Form-L licences, approved quota, in-house use, sales-tax status and digital invoicing
Lubricating/base oils 5% FED ad valorem listed for lubricating oil and base lubricating oils Possible price pressure in lubricants and downstream products Whether the item falls under the listed 2710 subheadings
Fertilizer No super-tax relief for fertilizer sector; minimum tax for fertilizer distributors/wholesalers rises to 0.5% Less relief than general businesses; distribution compliance cost may rise Entity classification and documentation conditions
Retail-packed plastic/chemical goods Expanded Third Schedule remains; plastic sheets/film/foil/tape stay, while the pesticide/insecticide entry is removed Sales tax may be collected earlier/on consumer-price basis for covered goods Whether the product is in the final Third Schedule list

Bottom line: chemical businesses should not trust a headline like "duties reduced" until they check product-level PCT/HS codes. Some inputs may get relief, while solvents, base oils and fertilizer-linked businesses face new or continuing pressure. The new schedule files make this more precise: compare the First Schedule statutory rate with any Fifth Schedule concession. The WhatsApp image in this folder was checked; it is the customs salient-features page and its highlighted ACD/RD points are included here.

What stayed friendly

  • SRO 1525, dated 13 September, immediately excludes locally manufactured hybrid electric vehicles up to 2,000cc from Table II of SRO 297(I)/2023. Other applicable sales-tax provisions still require checking; this is not a blanket exemption. Hybrid notification
  • EV CKD concession/exemption is extended to 30 June 2027 for local assembly support. Salient p.4
  • Fifth Schedule EV concessions continue through 30 June 2027: electric buses, electric trucks and electric prime movers are listed at 1% CD, and qualifying EV four-wheelers get concessional CD treatment. Fifth Sch p.98 Fifth Sch p.99
  • Specialized construction vehicles get customs duty reduction from 20% to 10%. Salient p.1
  • Auto Policy 2026-31 was still pending in public reporting, so the budget is not the full auto-sector roadmap. Dawn note
EV assembly support Policy still pending

What got hit

  • The committee substitutes CBU electric-car/SUV FED tiers: 0% up to USD 75,000 customs value, 30% above USD 75,000 to USD 110,000, and 40% above USD 110,000. Committee p.14
  • The First Schedule separately lists CBU electric trucks at 30% CD, while the Fifth Schedule can reduce qualifying electric trucks to 1%; eligibility and EDB certification decide the real rate. First Sch p.4 Fifth Sch p.99
  • The committee substitutes FED of 86% for covered imported vehicles from 2,000cc to 3,000cc and 92% above 3,000cc. Committee p.15
  • ICT token tax shifts for larger vehicles toward invoice-value basis: 0.25% for 1,001cc-2,000cc and 0.35% above 2,000cc. Finance p.105
Luxury imports Headline risk
Vehicle item Budget change Plain meaning Missing / verify
EV CKD kits EV-specific CKD components can qualify for concessional rates; EV plant and machinery and specified inputs are listed at 0%, with chargers imported with CKD kits at 1% Good for local EV assemblers and vendor supply chains Exact model/part eligibility, quota, EDB certification and localization rules
Imported personal-use EVs 0%, 30%, 40% FED at USD 75,000 and USD 110,000 customs-value thresholds Lower-value CBU EVs spared; premium imports targeted Customs value under section 25 and final enacted thresholds
Imported cars/SUVs from 2,000cc 86% for 2,000cc-3,000cc; 92% above 3,000cc Committee proposal sharply increases the FED burden on large imported vehicles Whether other duties and sales tax stack on top
ICT token tax Larger vehicles move to invoice-value percentage Higher-value cars pay more annually in Islamabad Province-wise token tax is separate
Auto Policy 2026-31 Not fully released in the budget package The sector still lacks the full roadmap Cabinet-approved policy after budget

Ports and shipping

  • STGO 25, dated 28 September, confirms that factory-to-own-warehouse transfers under the same STRN do not require a digital tax invoice. Each consignment must carry the prescribed Stock Transfer Note; reconcile records monthly and retain them for six years. A warehouse with a different STRN requires the normal taxable-supply and digital-invoice treatment. Transfer rules Stock Transfer Note
  • Sales-tax exemption is added for import of tankers, dredgers, drilling or production platforms, floating structures and goods-transport vessels, excluding cruise ships, excursion boats and ferry boats, subject to Ministry of Maritime Affairs approval. Finance p.40
  • Karachi Shipyard and Engineering Works gets a 0% customs-duty route for machinery, equipment, raw materials, components and other capital goods used in ship/boat/floating-structure work. Fifth Sch p.23 Finance p.43
  • Non-resident shipping compliance is tightened through the new authorised shipping agent framework and vessel/voyage return rules. Finance p.46 Finance p.60

Aviation and strategic imports

  • Aircraft, aircraft spare parts, maintenance kits, MRO/AMO machinery, new greenfield-airport equipment, aviation simulators and aircraft engines are listed at 0% CD for qualifying airline/aviation cases. Fifth Sch p.110 Fifth Sch p.111
  • The committee adds sales-tax exemption for import or lease of aircraft and parts by any Pakistan-registered airline, effective 1 July 2027. Committee p.5
  • Bullet-proof vehicles get targeted exemption for Federal Government SCO logistics and government counter-terrorism needs, subject to approvals. Finance p.40 Finance p.107
  • Club, business and first-class international air ticket FED is reduced into route-based rupee amounts from 1 July 2026. Finance p.106

Refineries and fuel trade

  • Existing refineries get sales-tax exemption on listed machinery and equipment for upgradation, expansion, balancing, modernization and rehabilitation, subject to direct import and ministry approval. Finance p.41 Finance p.43
  • Fifth Schedule also lists 0% CD for approved petroleum oil refining machinery and capital goods, subject to Petroleum Division and OGRA certification. Fifth Sch p.24
  • The committee removes the proposed petroleum-levy/climate-support-levy reporting, audit, recovery and penalty package. Existing levy law remains. Committee p.2
  • Terminal and port services are listed at 12% withholding on gross payment. Finance p.88 Finance p.89
  • Final marine-bunkering customs rules now cover operator registration, Pakistan Single Window declarations, port permissions, sampling, audit trails and penalties at Karachi, Port Qasim and Gwadar. SRO 1082/2026

Bottom line: ports, shipping, aviation and refinery operators have targeted import relief, while the final marine-bunkering rules add a concrete registration, declaration, sampling and audit workflow. Shipping-agent liability and terminal-service withholding remain, but the committee removed the proposed new petroleum-levy reporting package.

Electricity budget story

  • Power-sector federal development allocation is Rs 116.2 billion. Radio note
  • Total subsidies for electricity and other sectors are reported at Rs 1.091 trillion. Radio note
  • Business press reports power-sector subsidy cut to around Rs 830 billion for FY2026-27, with K-Electric allocation rising to Rs 163 billion. BR note
  • Rs 252 billion is reported for power circular-debt containment. BR note

What businesses should watch

  • Direct Subsidy Mechanism is expected from January 2027 after identifying and verifying subsidized consumers. Geo note
  • Government claims over Rs 143 billion savings versus allocated FY2025-26 power-consumer subsidy and net-zero circular-debt accumulation this year. Geo note
  • SRO 1245 now implements the steel electricity-tax regime: Rs 30 per unit for local-scrap users, Rs 5 for qualifying integrated units with more than 70% imported/EFS scrap, and Rs 35 for captive/self-generated power. STGO 16 originally lists 31 qualifying taxpayers from 1 July. STGO 22 adds five more with immediate effect from 5 September, covering all their electricity connections. STGO 22 SRO 1245 STGO 16
  • FBR's 7 July operating order applies the 1% minimum value-addition tax only to registered importers supplying imported coal directly and exclusively to a NEPRA-licensed coal IPP, backed by contracts, records and audit compliance. STGO 9/2026
  • Allocation does not equal lower bills; tariff notifications and subsidy eligibility will decide real impact.
Electricity item Number / rule Meaning Missing / verify
Power development allocation Rs 116.2b Projects, grid and generation support Quarterly PSDP release, not just budget allocation
Power subsidy Reported around Rs 830b Lower subsidy envelope can pressure tariffs if reform misses Actual tariff notifications and subsidy circulars
Direct subsidy Expected from January 2027 Subsidy may become consumer-targeted instead of broad Eligibility, registration and bill treatment
Steel electricity basis Rs 30/unit local scrap; Rs 5/unit qualifying integrated imported/EFS scrap; Rs 35/unit captive/self-generation Electricity usage is an operative tax trigger; STGO 16 as amended by STGO 22 lists 36 taxpayers at the Rs 5 rate Quarterly list changes, DISCO billing and continuing eligibility

Relief and support

  • First Schedule seed rates are now explicit for selected lines: soybean seed under 1201.1010/1020/1090 is 0% CD, low-uric rape/colza seed under 1205.1010/1020/1090 is 5%, and other listed rape/colza seed under 1205.9010/9020/9090 is 0%. First Sch p.1
  • Fifth Schedule Part-I gives exact agriculture machinery relief: tractor-mounted trenchers, laser land levelers, irrigation/drainage/agro-chemical application equipment, tube-well filters/strainers, spray pumps and mist blowers are listed at 0% CD. Fifth Sch p.4
  • Post-harvest stores, greenhouse/tunnel-farming equipment, fruit/vegetable/flower processing machinery, horticulture/floriculture tools, grain storage and cool-chain machinery also have schedule-specific concession routes. Fifth Sch p.5 Fifth Sch p.6 Fifth Sch p.8
  • Zarkhez programme targets 750,000 small farmers with Rs 300 billion in fully digital loans. APP note
  • Water projects receive Rs 103.1 billion, including major dam and Karachi K-4 allocations. Radio note

Pressure points

  • Fertilizer does not get the broader super-tax relief given to many businesses. Salient p.7
  • Fertilizer distributors and wholesalers are named in minimum-tax tightening to 0.5%. Finance p.89
  • Pesticide products and pesticide solvents need separate treatment from general agriculture relief; see the Pesticides tab. Finance p.35
  • Machinery relief is schedule-specific; every tractor, implement or spare part is not automatically exempt. The First and Fifth Schedule tractor entries need to be reconciled by exact PCT code before pricing. First Sch p.4 Fifth Sch p.109

Pesticide products

  • The introduced bill proposed adding retail-packed insecticides, fungicides, herbicides and related heading 38.08 products to the Sales Tax Third Schedule. Introduced p.35
  • The committee-reported bill removed that pesticide entry, and the gazetted Act keeps it out of the final Third Schedule list. Committee p.4 Gazette p.61
  • This removes a proposed Third Schedule valuation/pricing change; it is not a new sales-tax exemption for pesticides. Check the exact product heading, existing product rate and valuation rule before repricing.
Removed from proposal Gazette confirmed

Application equipment

  • Fifth Schedule covers agro-chemical application equipment at 0% CD, including submersible pumps, field drainage pumps, air release valves, pressure gauges, water meters, backflow preventers, controllers, tube-well filters and strainers. Fifth Sch p.4
  • Fertilizer and plant-protection equipment includes diaphragm spray pumps and mist blowers at 0% CD. This is equipment relief, not a pesticide product exemption. Fifth Sch p.4
Equipment relief Not product relief

Solvent inputs

  • Petroleum top naphtha, white spirit/MTT and solvent oil remain listed at FED of Rs 80 per litre. Gazette p.73
  • The same petroleum products are inserted into the Federal Excise Second Schedule; FBR describes this as VAT-mode treatment for the newly levied FED. Finance p.107 Salient p.13
  • Approved in-house use of white spirit and solvent oil may qualify for a conditional exemption. Both sides need Form-L licences, approved quota, and the applicable sales-tax/digital-invoice conditions; top naphtha is not included. Gazette p.73 p.74
Rs 80/litre FED VAT mode check
Pesticide-sector item Verified budget treatment Likely business effect What to verify
Retail pesticide packs Introduced Third Schedule addition removed from the gazetted Act Proposed Third Schedule valuation change should not apply under the final Act Existing product rate, exact heading and current valuation rules
White spirit / MTT FED Rs 80/litre; conditional in-house exemption under the committee bill Cost increase unless the approved industrial-use conditions are met PCT 2710.1240, Form-L licences, quota, in-house use and digital invoices
Solvent oil FED Rs 80/litre; conditional in-house exemption under the committee bill Cost increase unless the approved industrial-use conditions are met PCT 2710.1250, Form-L licences, quota, in-house use and digital invoices
Petroleum top naphtha FED Rs 80/litre on PCT 2710.1942 Cost watch item for covered petroleum solvent inputs Whether the input is the listed naphtha line, not a different petroleum product
Agricultural machinery Customs-duty concession route for listed agriculture machinery/equipment Relief for covered machinery, not pesticide chemicals or solvents Whether the machine is listed, exact PCT code, and any certification condition
Spray pumps / mist blowers / application equipment 0% CD under Fifth Schedule Part-I for listed plant-protection and agro-chemical application equipment Possible landed-cost relief for qualifying application equipment Exact PCT code, ministry certification where required, and whether the item is equipment rather than pesticide product

Bottom line: retail pesticides were removed from the proposed Third Schedule expansion, but this is not a blanket tax exemption. Solvent inputs, active ingredients, application equipment and agricultural machinery still need separate HS/PCT and sales-tax/FED/customs checks.

Health and pharma relief

  • Health projects receive Rs 25.1 billion for tertiary care, emergency/critical care, cancer treatment, disease surveillance, diagnostics and regulatory modernization. Geo note
  • Fifth Schedule Part-II lists many APIs at 0% customs duty under DRAP-linked conditions; FBR's summary separately highlights critical cancer-related APIs. Fifth Sch p.55 Salient p.1
  • Contraceptives and female sanitary pads/tampons are added to the exempt schedule in the Finance Bill. Finance p.39

What is still unclear

  • The budget does not give a full medicine-pricing or hospital-cost roadmap.
  • API and excipient relief is targeted; pharma importers must check the exact Fifth Schedule API/excipient lists, PCT codes and DRAP approval route. Fifth Sch p.70 Fifth Sch p.71
  • Sanitary products and contraceptives should be checked against final sales-tax schedules and SRO treatment.

Small and medium retailers

  • SRO 1166 already notifies a voluntary small-shopkeeper procedure for Tax Year 2026: eligible individuals with turnover up to Rs 200m pay 1% of gross turnover, with cash payment of at least Rs 25,000 after withholding adjustments. Multi-shop owners, Tier-1 retailers, jewellers and professionals are excluded. Shopkeeper rules
  • The notified procedure applies to Tax Year 2026; do not silently extend it to TY2027. Existing TY2025 filers must meet the prior-year tax floor and anti-splitting conditions. The Act's TY2027 onward election is a separate provision. Applicability and conditions
  • Eligible participants receive the specified Section 153 withholding and POS/digital-invoicing exemptions, simplified returns and conditional audit protection. Withholding may be credited but excess is not refundable, and the minimum Rs 25,000 cash payment still applies. Procedure
  • The turnover threshold for withholding exemption of small traders is increased from Rs 100m to Rs 200m. Salient p.9
  • Tier-1 retailer definition expands to include retailers with Rs 200m or more annual turnover. Salient p.5
  • STGO 17 amends the small-confectionery printing concession: where individual wrappers cannot practically carry the information, packages may contain up to 250 pieces, each priced at no more than Rs 10 and weighing no more than 10 grams. Permanent retail-price and sales-tax printing and the other STGO 8 requirements still apply. STGO 17

E-commerce and documented sales

  • E-commerce tax is adjustable for sellers with turnover exceeding Rs 200m. Salient p.8
  • Sales-tax withholding and Third Schedule expansion increase pressure on unregistered buyers and retail-packed goods. Salient p.5
  • The 0.5% minimum-tax list is expanded to pharmaceuticals, fertilizer, cigarettes, sugar, locally made mobile phones, packaged food, electronics, beverages/dairy, cosmetics/personal care, cleaning products, tissues, foil, air fresheners and insect sprays, subject to ATL conditions. Committee p.12
  • STGO 20 provides risk-based sales-tax registration: complete low-risk applications should be approved within three working days as far as practicable; deficiencies must be specified within seven days. Manufacturer association certification assists verification but does not replace legal checks or grant immunity. Registration rules
  • STGO 19 replaces STGO 11 Annexure-A from 1 July 2026. Local manufacturer supplies use value of supply; covered imports use 130% of the customs value inclusive of customs duties and FED. The retailer pays tax on retail value, and both supplier and retailer must meet the stated digital integration, POS and digital-invoice conditions. Revised matrix

Retail-packed goods

  • STGO 27, dated 7 October, requires registered manufacturers, including toll manufacturers, of packaged tea, specified household electronics, paper/paperboard, edible oil/ghee and leather (including tanneries and synthetic leather) to install production video surveillance by 15 October 2026. Manufacturers bear the cost, must use authorized vendors and retain recordings for at least two months. From that deadline, covered goods cannot leave the premises unless produced under an operational system. Scope / deadline Costs / dispatch rules
  • SRO 1751, also dated 7 October, separately notifies immediate electronic production monitoring for registered leather and paper/paperboard manufacturers under the Sales Tax Rules. Leather / paper notification
  • The Third Schedule expansion remains broad, but the committee removes the pesticide/insecticide entry, keeps plastic sheets/film/foil/tape, carves out footwear sold through qualifying digitally integrated/POS-compliant channels, and limits tableware to goods put up for retail sale. The current transaction matrix is STGO 19 Annexure-A, replacing the original STGO 11 matrix. Committee p.4 STGO 19 matrix
  • STGO 17 amends the small-confectionery printing concession: where individual wrappers cannot practically carry the information, packages may contain up to 250 pieces, each priced at no more than Rs 10 and weighing no more than 10 grams. Permanent retail-price and sales-tax printing and the other STGO 8 requirements still apply. STGO 17
  • The new First Schedule also gives replacement CD rates for many plastics and packaging inputs, including plastic waste, sheets/films, bottles, caps, closures and other plastic articles. First Sch p.2
  • If a higher than 18% sales-tax rate is already notified for a listed product, that higher rate continues after Third Schedule inclusion. Finance p.38
  • Registered toll manufacturers must withhold from unregistered buyers at four times the tax charged on conversion charges. Finance p.45

Excise watch

  • WHO-standard sports or electrolyte beverages are carved out if formulated for hydration/electrolyte replenishment and do not contain sugar above 5g/100ml or artificial sweetener. Finance p.103
  • Acetate tow FED is reduced to Rs 10,000/kg from Rs 44,000/kg, while e-liquid FED rises to Rs 16,500/kg. Salient p.13
  • Cigarette brand variants cannot be introduced or sold below the lowest actual price of the existing brand on budget day, and counterfeit cigarettes/beverages face stronger monitoring, seizure and destruction rules. Finance p.104 Finance p.95
Consumer-sector item Budget treatment Business meaning What to verify
Retail-packed FMCG Expanded Third Schedule Sales tax shifts closer to manufacturer/importer and consumer-price basis Exact product category, packing, rate and valuation
Same-state imported goods 3% value addition tax if goods are sold as imported instead of used in-house Manufacturers using import routes still face the 3% charge, but the introduced threshold-linked prosecution provision is removed Import purpose, in-house consumption records and same-state sales ratio
Tobacco inputs / e-liquid Acetate tow relief; e-liquid FED increase Tobacco input cost may ease, vaping/e-liquid burden rises Exact product line and FED table entry
Hydration beverages Conditional carve-out from mineral/aerated beverage wording Sports drink treatment depends on formula and sugar/sweetener content Product formulation, nutrition label and final FBR guidance

Banking and finance rules

  • Banking companies remain excluded from super-tax relief; income above Rs 150m stays at 10% super tax. Salient p.7
  • Banks and electronic money institutions must provide high-value deposit and withdrawal data for algorithmic comparison through a Central Data Hub. Salient p.10
  • The committee also authorizes the State Bank to establish a secure centralized virtual repository of prescribed banking records and transactions. Committee p.8
  • Special Purpose Vehicles under asset-backed securitization are proposed for income-tax exemption. Salient p.8
  • Life-insurance and family-takaful payouts are exempt after four years; the amended rate table lists 15% within one year and 10% after one year but before four years. Committee p.10

Business meaning

  • Bank account flows, tax returns and declared sales need to match better than before.
  • Foreign card advance tax reduction from 5% to 0.5% may help formal foreign payments. Salient p.8
  • The missing piece is operational detail: data fields, thresholds, notices, correction process and certificates.

Bank savings / deposits

  • No clean headline relief was found for ordinary savings-account profit in the reviewed budget files.
  • The clear new bank-account rule is reporting of deposits or withdrawals above Rs 100m in a six-month reporting period for algorithmic tax matching. Finance p.65
  • The account definition includes current, call, saving, fixed, term and similar deposits, with peak credits and total credits included. Finance p.66
High-value accounts Certificate needed

Stocks, mutual funds, ETFs

  • NCCPL's role in computing and determining listed-securities capital gains is expanded and clarified. Salient p.11 Finance p.53
  • The protection from enhanced tax rates for non-ATL persons on capital gains from listed securities is withdrawn. Salient p.10
  • ETFs are not separately explained in the headline files; treat them by their legal product category, usually listed security or fund unit, until broker/fund guidance confirms it.
ATL matters more ETF category check

Capital market support

  • Qualifying Special Purpose Vehicles for asset-backed securitization get proposed income-tax exemption to support capital market development. Salient p.8
  • Qualifying private-equity and venture-capital funds get an income exemption when at least 90% of adjusted accounting income is distributed, subject to the listed-company acquisition restriction. Committee p.11
  • Special account holders using FCVA, FCBVA, NRVA or NRBVA accounts have listed categories for profit on debt, GOP securities, PSX securities, mutual funds and dividends. Finance p.90 Finance p.91
  • Broker, bank, CDC, NCCPL and fund-manager certificates still decide the practical tax record investors can actually use.
Structured finance relief Investor paperwork
Investor item Budget change / signal Plain meaning What to verify before acting
Savings accounts / bank deposits High-value deposits and withdrawals above Rs 100m are reportable for algorithmic matching. Ordinary small savers are not the obvious target; large bank flows need clean declared-source records. Bank tax certificate, withholding certificate, and whether flows cross the reporting threshold.
Profit on debt / government securities Special-account language covers profit on debt and GOP securities through FCVA, FCBVA, NRVA and NRBVA routes. Overseas/special-account investors should not generalize this to every local deposit account. Account type, source of investment funds, withholding rate, and gazetted Finance Act wording.
Listed shares / stocks NCCPL capital-gain computation role is clarified; non-ATL capital-gain protection is withdrawn. Being on ATL and keeping broker/NCCPL records becomes more important for investors. ATL status on transaction date, broker statement, CDC/NCCPL tax certificate, and final circular.
Mutual funds / ETFs Mutual-fund units are named in the special-account language; ETFs are not separately explained in the headline files. Do not assume a separate ETF rule; classification matters. Fund category, whether the ETF is treated as a listed security or fund unit, and fund-manager tax note.
Dividends Dividend income from PSX securities and mutual funds is included in the special-account wording. Dividend paperwork should be kept separate from capital-gain paperwork. Company/fund dividend voucher, withholding certificate, and investor tax profile.
Asset-backed securitization / SPVs Qualifying SPV income is exempted. This helps structured finance and capital-market product development, not every retail investor directly. Whether the vehicle qualifies as an SPV under the final law and SECP/tax structure.

Plain warning: this tab is not investment advice. The budget does not say "stocks are good" or "savings accounts are bad"; it mostly changes compliance, reporting and product-specific tax treatment. Use the gazetted Finance Act plus bank, broker, CDC, NCCPL and fund-manager certificates before making a tax or investment decision.

What got easier

  • Advance tax on property sale under 236C is reduced to 2.75% of gross consideration. Gazette p.58
  • Section 7E deemed income on immovable property is omitted. Salient p.7
  • The government presents the change as construction-sector support. Radio note

What is now confirmed

  • 236K purchase advance tax is confirmed at 1.25% of fair market value in the gazetted Act. Gazette p.58
  • Provincial taxes and registration costs are separate from federal advance tax.
  • Actual transaction cost still depends on the property, buyer/seller profile, withholding certificates and implementation guidance.
Gazette confirmed Check transaction profile

Exporters

  • Tax collection on export proceeds reduced from 2% to 1.25%. Salient p.8
  • The committee excludes a person from super tax when realized export proceeds exceed 80% of total turnover for the tax year. Committee p.12
  • Export Refinance Scheme allocation reported at Rs 88 billion. Radio note
  • Customs rationalization may help exporters if input goods fall under reduced tariff lines.

IT and freelancers

  • 0.25% concessional tax rate for IT and IT-enabled services exports extended to Tax Year 2029. Salient p.7
  • FY26 IT exports closed at a record US$4.6 billion, up 20.6%, according to the July Economic Update. July outlook
  • Social-media revenue has 5% ATL / 10% non-ATL withholding rates in FBR's TY2027 reference card; track creator income and filing status separately. Rate card p.9

Publishing

  • Newsprint, books and magazines are in the exempt schedule, but brochures, leaflets and directories are excluded. Finance p.38
  • This is sales-tax relief for qualifying publishing products, not a blanket exemption for every printed marketing item.
  • Publishers should separate books/magazines from brochures, catalogues, leaflets and directories in invoices.

TV and advertising

  • Advance tax on foreign television plays and advertisements is withdrawn. Salient p.8
  • The practical effect depends on contract type, payment route, withholding certificate and final circulars.
  • Media buyers should still check whether other withholding, sales-tax or provincial service-tax rules apply.

Creators

  • SRO 1641, dated 23 September, finalizes the special procedure for covered resident persons earning from social-media interaction with users in Pakistan. Minimum income is remuneration less expenses capped at 30% of revenue. Remuneration uses the higher of actual receipts and the prescribed view-based benchmark; the YouTube benchmark is Rs 195 per 1,000 views, with evidence allowed for lower receipts. Quarterly advance tax and a dedicated return declaration apply. This is an income-computation procedure, not a new flat withholding rate. Creator rules Advance tax / definitions
  • Circular 02 confirms that section 154B deductions on social-media platform receipts are minimum tax for residents and final tax for non-residents without a Pakistan permanent establishment. Banking and non-banking financial institutions deduct at credit or receipt. Circular 02 p.3
  • FBR's TY2027 card lists 5% withholding for ATL persons and 10% for non-ATL persons on social-media platform revenue. The card is a reference aid; the amended law prevails. Rate card p.9
  • The Finance Bill names digital content creators and social media influencers earning from platforms such as YouTube, Facebook, Instagram and TikTok. Finance p.63
  • Creators should preserve platform statements, bank credit records, withholding certificates and expense records separately.

Bottom line: media is mixed. Books/magazines and foreign TV/ad advance tax get relief, while creator platform receipts become more directly reportable through financial institutions.

Transport

  • Transport infrastructure: Rs 365 billion.
  • N-25 Karachi-Chaman upgrade: Rs 100 billion.
  • M-6 Sukkur-Hyderabad: Rs 30 billion.
  • Karachi-Rohri ADB-financed work: Rs 25 billion.

Energy and water

  • Power sector federal development allocation: Rs 116.2 billion.
  • Water projects: Rs 103.1 billion.
  • Diamer-Bhasha Rs 14b, Mohmand Rs 22b, Dasu Rs 15b, K-4 Karachi Rs 10b.

Social and urban

  • Sustainable urban development and housing: Rs 54.6 billion.
  • Health projects: Rs 25.1 billion.
  • Higher education: Rs 46 billion.
  • School and college education: Rs 26.3 billion; youth skills Rs 7.9 billion.

All figures in this tab are from Radio Pakistan's detailed budget story, which reports the Finance Minister's sector allocation speech. Radio note

FBR is becoming more data-driven

  • SRO 1828 brings Chapter XX of the Income Tax Rules into force for every person or case from 15 October 2026. It supplies the commencement notification required by rule 233, updating the earlier pending-commencement position. Commencement does not mean every taxpayer has been selected for an audit. Commencement
  • Circular 04, dated 15 October, further extended Tax Year 2026 income-tax returns to 31 October 2026 for persons originally required to file by 30 September whose deadline had moved to 15 October. The date in this circular has now passed. No later general extension was verified in this targeted review; this is not a deadline for every taxpayer or return. Circular 04
  • SRO 1904 finalizes rule 33U for the section 64D integration tax credit. Required equipment must be successfully integrated with FBR during the relevant tax year, directly and exclusively used for that integration, and supported by activation records and acquisition/payment evidence. Eligible investment includes purchase and one-time installation/integration costs; recurring support, maintenance, utilities, salaries, training and financing costs are excluded. General-purpose systems qualify only for a separately identifiable dedicated component. Claim in the integration year without duplicating expenditure. Credit conditions Eligible costs / claim
  • STGO 29 requires covered registered steel melters, re-rollers and composite units, including toll, conversion and contract manufacturers, to install, integrate, test and operationalize approved production-monitoring systems at each facility and active line by 30 December 2026. The order takes immediate effect and includes production/dispatch reconciliation, authorized vendors and restrictions on unmonitored supplies. This installation deadline is separate from STGO 27 for other manufacturing sectors. Steel order
  • Draft SRO 1691, dated 6 October, proposes an IRIS Form ATL-U procedure for qualifying late-filing individuals to enter the Active Taxpayers' List without the surcharge, conditional on a six-month undertaking not to acquire property. Breach would withdraw the benefit. The document is a consultation draft; this review has not verified final implementing rules and does not treat the draft as an effective surcharge repeal. Draft only
  • FBR published income-tax Circular 02 on 8 September and sales-tax/FED Circular 01 on 11 September. These explain the Finance Act 2026; they do not replace it. Income tax Sales tax / FED
  • National Faceless Centre for audits, assessments and appeals. Salient p.10
  • Algorithmic settlement mechanism for discrepancy resolution. Notes p.10
  • Financial-data matching for high-value deposits and withdrawals. Salient p.10
  • Electronic invoicing and production monitoring expansion. Finance p.14
  • Current operating evidence includes STGO 17 confectionery limits, STGO 19 footwear valuation, STGO 20 risk-based registration and SRO 1413 customs case scrutiny. STGO 17 STGO 19 STGO 20 SRO 1413
  • Failure to install required electronic resources can disallow 3% of expenditure, reduced from the introduced “up to 5%” wording. Committee p.6
  • The proposal to share sectoral sales-tax return data among registered businesses is removed. Committee p.4

Business action list

  • Keep bank flows, sales invoices, inventory and tax returns consistent.
  • Map imports by exact HS/PCT code before assuming tariff relief.
  • Prepare for more system integration if turnover or sector triggers apply.
  • Review packaging against STGO 8 as amended by STGO 17, map footwear routes against the replacement STGO 19 annexure, and use the TY2027 withholding card alongside the law.
  • Check small-shopkeeper eligibility, tax year, minimum cash tax and anti-abuse conditions before claiming SRO 1166 exemptions. Shopkeeper rules
  • A taxpayer may object within 15 days to FBR's first external-auditor nominee; scrutiny committees may co-opt a chartered accountant as a non-voting member. Committee p.8
  • The proposed customs penalty increase is moderated to Rs 5m rather than Rs 10m. Committee p.2
  • SRO 1413, dated 19 August, brings the Independent Case Scrutiny Committee (Customs) Rules into force immediately. Committees review proposed higher-court litigation and pending cases; this is a legal-process reform, not a change in tariff rates. Customs scrutiny rules

1. Broad explanatory circulars are now available

The Gazette remains the legal baseline. FBR published income-tax Circular 02 on 8 September and sales-tax/FED Circular 01 on 11 September. Use these alongside applicable SROs and STGOs; this review does not claim exhaustive coverage. Income tax Sales tax / FED Rate card Registration

2. Property purchase rate conflict is resolved

The gazetted Act confirms 236K purchase advance tax at 1.25% of fair market value. Still check provincial costs, transaction profile and certificates before closing a deal. Gazette p.58

3. Customs relief is code-specific

"Tariff rationalization" does not mean every importer gets cheaper imports. It depends on exact PCT/HS lines, product classification, the First Schedule statutory rate and any Fifth Schedule concession conditions.

4. Vehicle tax headlines are messy

The committee changed key FED figures to USD-based EV thresholds and 86%/92% large-vehicle rates. Customs, sales tax and other charges can still stack, so do not price from the introduced bill or headlines.

5. Auto policy is still missing

The budget gives tax pieces, but the Auto Policy 2026-31 is still needed for localization, long-term tariff roadmap, incentives and model planning.

6. Electricity subsidy rules are not enough yet

Direct subsidy is expected from January 2027, but businesses and households need the actual eligibility, registration, verification and bill-treatment rules.

7. Banking data matching needs process clarity

Banks and EMIs may feed high-value transaction data into a Central Data Hub, but thresholds, notices, correction process and certificates still matter.

8. Creator computation rules are now final

SRO 1641, dated 23 September, finalizes the special procedure for covered resident persons earning from social-media interaction with users in Pakistan. Minimum income is remuneration less expenses capped at 30% of revenue. Remuneration uses the higher of actual receipts and the prescribed view-based benchmark; the YouTube benchmark is Rs 195 per 1,000 views, with evidence allowed for lower receipts. Quarterly advance tax and a dedicated return declaration apply. This is an income-computation procedure, not a new flat withholding rate. Creator rules Advance tax / definitions Circular 02 confirms that section 154B deductions on social-media platform receipts are minimum tax for residents and final tax for non-residents without a Pakistan permanent establishment. Banking and non-banking financial institutions deduct at credit or receipt. Circular 02 p.3 Check residence, permanent-establishment status and certificates before applying the treatment.

9. PSDP is allocation, not guaranteed release

Development budgets can be delayed or cut during the year. Track quarterly PSDP releases before treating projects as certain.

10. Provincial surplus is a big assumption

The 3.6% fiscal deficit target depends on provinces generating a Rs 1.794 trillion surplus. If this misses, pressure returns.

11. Retailer rules exist; verify eligibility and tax year

SRO 1166 is final for Tax Year 2026, with a voluntary 1% turnover route, minimum Rs 25,000 cash payment, exclusions and conditional compliance relief. The TY2027 onward election must be read separately; do not describe the whole scheme as awaiting rules. Final procedure

12. Pesticides left the proposed Third Schedule, not the tax system

The introduced bill's retail-pesticide entry is absent from the gazetted Third Schedule list. That avoids the proposed Third Schedule treatment, but it is not a blanket exemption; existing product tax, solvent FED and customs rules still apply. Gazette p.61

13. Third Schedule expansion is broad and packaging rules are now operational

STGO 8 price-display obligations remain, with the revised STGO 17 limits of 250 confectionery pieces, Rs 10 and 10 grams per piece. Footwear businesses must use the replacement STGO 19 annexure and its retailer/digital-invoice conditions. Printing amendment Footwear matrix

14. Logistics has both relief and a new operating workflow

Ports, shipping, aviation and refineries get targeted relief, while marine-bunkering operators now face registration, PSW, sampling and audit requirements. Shipping-agent liability and port-service withholding remain; the proposed new petroleum-levy reporting package was removed. SRO 1082/2026

15. WhatsApp image was only one customs page

The folder image confirms the highlighted ACD/RD customs points, but it does not replace the full FBR Salient Features PDF.

What Changed Timeline

A quick sequence for sharing context without forcing people to read legal PDFs.

Budget presented. Federal outlay Rs 18.771T, FBR target Rs 15.264T, 4% growth and 8.2% inflation targets announced.
FBR proposals released. Finance Bill, Notes on Clauses and Salient Features show legal details behind tax announcements.
Standing Committee reports an amended bill. Petroleum-levy law amendments are omitted and major vehicle, solvent, aviation, retail and compliance provisions are revised. Official report
National Assembly passes the Finance Bill. Government-backed and Standing Committee amendments are adopted after opposition amendments are rejected and the opposition walks out. Dawn scrape
Finance Act gazetted. Act No. XLIII of 2026 receives presidential assent and is published in the Gazette of Pakistan, Extraordinary, Part I. Gazette p.1
General commencement date. The Finance Act 2026 generally comes into force on 1 July 2026, unless a provision says otherwise. Gazette p.2
Release strategies issued. Finance Division's development and recurrent budget release strategies apply immediately and set quarterly fund-release controls for FY2026-27. Dev release p.1 Recurrent release p.1
Third Schedule label rules issued. STGO 8 requires prominent, permanent display of retail price, sales tax and final price on covered packs. It was added to this report in the 1 August review. Printing rules
Two operating rules issued. FBR set the documentary conditions for the 1% coal value-addition rule and finalized customs procedures for marine bunkering at Karachi, Port Qasim and Gwadar. Coal order Bunkering rules
Execution baseline expanded. Economic Survey, tax-expenditure, contingent-liability, performance-budget and June inflation documents were added for target-versus-actual tracking. Survey PBS inflation
FBR adds steel and footwear implementation. STGO 10 creates the voluntary-corporatization transition for eligible iron/steel manufacturers; STGO 11 clarifies the footwear/POS carve-out from the retail-price regime. Steel Footwear
Federal pay and austerity package notified. BPS-2026, the taxable 7% relief allowance, 50% higher conveyance allowance, disparity allowance and FY2026-27 austerity controls become operational from 1 July. BPS Conveyance Austerity
Diyat amount notified. Finance Division set the FY2026-27 statutory Diyat value at Rs 19,352,390, based on 30,630 grams of silver. Diyat
Pension and economic close-out published. Baseline federal pensions rise 7%; the July outlook reports FY26's US$0.14b current-account deficit and record US$4.6b IT exports. Pension Outlook
Steel rules become operational. SRO 1245 sets Rs 30, Rs 5 and Rs 35 per-unit electricity-tax categories; STGO 12 lists eight newly incorporated successor entities. SRO 1245 STGO 12
Contributory pension scheme moves forward. Finance Division lists 16 eligible pension fund managers that executed agreements for the Defined Contribution Pension Fund Scheme-2024. Managers
First FY27 inflation check and steel correction. July CPI is 9.2% year-on-year and 1.2% month-on-month; STGO 13 corrects one steel successor record. PBS July STGO 13
BPS-2026 allowance treatment clarified. Existing 2023/2024 ad-hoc allowances remain frozen, while new entrants receive the stated notional rates based on minimum BPS-2022. Clarification
FBR expands sector execution. STGO 15 adds the small-confectionery printing exception, and STGO 16 lists 31 steel taxpayers at Rs 5 per electricity unit. STGO 15 STGO 16
Contributory pension implementation. The 11 August implementation notice requires focal persons, verified employee records and AGPR updates within 15 days of receipt for covered regular appointees from 1 July 2024. This operationalizes the contributory scheme; it does not replace the 7% increase for existing pensioners. Pension implementation
Confectionery limits and steel list expand. STGO 17 raises the concession to 250 pieces/Rs 10/10 grams; STGO 18 adds seven steel successors. STGO 17 STGO 18
GPF and fiscal results published. FY26 GPF return is 12.05%; new GPF deductions apply to August pay. FY26 provisional deficit/primary surplus are 2.6%/2.9% of GDP. GPF return Deductions Fiscal results
Customs scrutiny and footwear rules. Customs case-scrutiny rules become final; STGO 19 replaces the footwear annexure from 1 July. SRO 1413 STGO 19
Federal gross salary floor notified. Covered employees receive a taxable top-up to Rs 40,700 from 1 July. Special allowance
Registration process and steel coverage expand. STGO 20 sets risk-based registration timelines; STGO 21 brings the steel successor table to nineteen. STGO 20 STGO 21
Report refreshed; earlier omission corrected. Added the TY2027 withholding card and the final 27 July small-shopkeeper procedure for TY2026. Their addition to this report is not their enactment date. Rate card SRO 1166
FBR published income-tax Circular 02 on 8 September and sales-tax/FED Circular 01 on 11 September. These explain the Finance Act 2026; they do not replace it. Income tax Sales tax / FED SRO 1498 adds four weekly checks after the initial eight validation cycles under rules 29(2) and 39F. Only amounts still uncleared or unverified then move to STARR processing. This changes refund timing, not the tax rate. Refund rules
STGO 22 adds five manufacturers to the Rs 5-per-unit electricity list, taking it to 36, effective immediately from 5 September. Separately, STGO 23 adds four corporatization successors on 16 September, taking that table to 23. STGO 22 STGO 23
SRO 1525, dated 13 September, immediately excludes locally manufactured hybrid electric vehicles up to 2,000cc from Table II of SRO 297(I)/2023. Other applicable sales-tax provisions still require checking; this is not a blanket exemption. Hybrid notification HEC-recognized degrees equivalent to M.Phil qualify for the Rs 2,500 monthly allowance from 17 July, subject to an equivalence certificate and prescribed conditions. The 3 September GPF resolution confirms 12.05% for FY2025-26. M.Phil allowance GPF resolution
The 18 September SOP replaces the 7 September version for covered federal defined-benefit pensioners. Proof of life is required at least every six months through NADRA channels, including Pak-ID; fixed March/September verification dates are abolished. Manual fallback arrangements remain available. Pension SOP
August national CPI is 11.1% year-on-year, up from 9.2% in July, and 1.2% month-on-month. Urban inflation is 10.4% and rural inflation 12.2% year-on-year. The FY27 target remains an 8.2% annual average, a different measure. PBS August
SRO 1641, dated 23 September, finalizes the special procedure for covered resident persons earning from social-media interaction with users in Pakistan. Minimum income is remuneration less expenses capped at 30% of revenue. Remuneration uses the higher of actual receipts and the prescribed view-based benchmark; the YouTube benchmark is Rs 195 per 1,000 views, with evidence allowed for lower receipts. Quarterly advance tax and a dedicated return declaration apply. This is an income-computation procedure, not a new flat withholding rate. Creator rules Advance tax / definitions
STGO 25, dated 28 September, confirms that factory-to-own-warehouse transfers under the same STRN do not require a digital tax invoice. Each consignment must carry the prescribed Stock Transfer Note; reconcile records monthly and retain them for six years. A warehouse with a different STRN requires the normal taxable-supply and digital-invoice treatment. Transfer rules Stock Transfer Note STGO 26 adds 18 HS headings (Annexure-II entries 431-448) to the restricted input-tax adjustment list for steel melters/re-rollers, with immediate effect from 28 September. Check the product heading before claiming credits on the listed finished and semi-finished steel goods; hardship may be raised with the Commissioner-IR. This does not amend the separate electricity-tax rates or approved-entity lists. Steel credit restrictions HS headings
SRO 1665, dated 29 September, finalizes Chapter XX on faceless audit and assessment, replacing the 25 September draft. Covered cases use IRIS communications, Digital Identification Numbers and separate audit, assessment and quality-control functions. SRO 1828 subsequently notified commencement for every person or case from 15 October 2026. See the new commencement source below. Scope / commencement IRIS procedure
Circular 03, dated 30 September, extends Tax Year 2026 income-tax returns originally due on 30 September to 15 October 2026. It applies to that filing group, not every taxpayer or tax return. Circular 04 subsequently extended this filing group to 31 October 2026; see the new extension source below. Return deadline
Draft SRO 1691, dated 6 October, proposes an IRIS Form ATL-U procedure for qualifying late-filing individuals to enter the Active Taxpayers' List without the surcharge, conditional on a six-month undertaking not to acquire property. Breach would withdraw the benefit. The document is a consultation draft; this review has not verified final implementing rules and does not treat the draft as an effective surcharge repeal. Draft only
STGO 27, dated 7 October, requires registered manufacturers, including toll manufacturers, of packaged tea, specified household electronics, paper/paperboard, edible oil/ghee and leather (including tanneries and synthetic leather) to install production video surveillance by 15 October 2026. Manufacturers bear the cost, must use authorized vendors and retain recordings for at least two months. From that deadline, covered goods cannot leave the premises unless produced under an operational system. Scope / deadline Costs / dispatch rules SRO 1751, also dated 7 October, separately notifies immediate electronic production monitoring for registered leather and paper/paperboard manufacturers under the Sales Tax Rules. Leather / paper notification
Circular 04, dated 15 October, further extended Tax Year 2026 income-tax returns to 31 October 2026 for persons originally required to file by 30 September whose deadline had moved to 15 October. The date in this circular has now passed. No later general extension was verified in this targeted review; this is not a deadline for every taxpayer or return. Circular 04
SRO 1828 brings Chapter XX of the Income Tax Rules into force for every person or case from 15 October 2026. It supplies the commencement notification required by rule 233, updating the earlier pending-commencement position. Commencement does not mean every taxpayer has been selected for an audit. Commencement
STGO 29 requires covered registered steel melters, re-rollers and composite units, including toll, conversion and contract manufacturers, to install, integrate, test and operationalize approved production-monitoring systems at each facility and active line by 30 December 2026. The order takes immediate effect and includes production/dispatch reconciliation, authorized vendors and restrictions on unmonitored supplies. This installation deadline is separate from STGO 27 for other manufacturing sectors. Steel order
SRO 1904 finalizes rule 33U for the section 64D integration tax credit. Required equipment must be successfully integrated with FBR during the relevant tax year, directly and exclusively used for that integration, and supported by activation records and acquisition/payment evidence. Eligible investment includes purchase and one-time installation/integration costs; recurring support, maintenance, utilities, salaries, training and financing costs are excluded. General-purpose systems qualify only for a separately identifiable dedicated component. Claim in the integration year without duplicating expenditure. Credit conditions Eligible costs / claim
The 29 October Economic Update reports July-September FY2027 FBR collection of Rs 3,086.2 billion, up 7.0% and Rs 33.2 billion above the quarterly target. September CPI eased to 10.3% year-on-year from 11.1% in August; July-September inflation averaged 10.2%. These are period outturns, not changes to the annual budget targets. The report also records a July-August overall fiscal surplus of 0.8% of GDP and primary surplus of 1.6%; those fiscal figures cover two months, not the full quarter. October outlook Inflation
Watch remaining implementation gaps. Check later notifications, creator and investor certificates, tax-year-specific retailer elections, and new CPI/PSDP releases. The withholding card is available, but it does not replace the law.
Sources & References

Offline mode: most official PDFs and all evidence notes are stored in the local sources folder; selected mirror/news links remain online. PDF chips try to open the exact page, for example Finance p.103. If a PDF viewer ignores the page jump, open the same PDF and go to the page printed on the chip.

100 shown
T1 FBR PDF 1. Finance Bill 2026 Exact legal text for salary slabs, property rates, exemptions, Third Schedule items, sector import relief, FED tables and commencement. T1 FBR PDF 2. Notes on Clauses Official explanation of clauses including faceless assessment, social-media WHT and surcharge omission. T1 FBR PDF 3. Salient Features Budget 2026-27 Official summary for customs, sales tax, income tax and federal excise measures, including petroleum-products FED in VAT mode. T1 Finance Division 4. Ministry of Finance Budget Wing Official budget document hub. T1 Government media 5. Radio Pakistan Budget Overview Main budget outlay, macro targets, PSDP, BISP and sector allocations from the budget speech. T1 State news agency 6. APP Budget Report Government-linked coverage of macro story and sector/tax announcements. T2 Reuters 7. Reuters IMF/Defence Context Independent context on IMF constraints, defence increase and development squeeze. T3 Dawn 8. Dawn Tax Breaks Summary Useful independent summary of tax relief and customs/sales-tax changes. T3 Business press 9. Business Recorder Fiscal Context Revenue target, fiscal deficit, provincial surplus and IMF framing. T3 Geo 10. Geo Women's Health Products Coverage Cross-check on public reporting around sanitary pads and contraceptives. T3 Business press 11. Business Recorder Customs Duty Rates Cross-check on tariff rationalization for industrial inputs including chemicals and raw materials. T3 Business press 12. Business Recorder Power Subsidy Cross-check on power-sector subsidy cut, K-Electric allocation and circular-debt containment. T3 Dawn 13. Dawn Auto Sector EV Duties Cross-check on EV CKD extension, luxury EV duties and pending Auto Policy 2026-31. T3 Geo 14. Geo Budget Overview Cross-check on electricity reforms, direct subsidy mechanism, circular debt claim and health allocation. T3 Supporting image 15. WhatsApp Customs Page Local image checked from the folder. It shows the customs salient-features page with ACD/RD highlights. T1 FBR PDF 16. First Schedule Tariff Vetting Exact replacement PCT/CD entries for selected tariff lines, including seeds, plastics/packaging, machinery, electrical goods, EV trucks, tractors and government/security imports. T1 FBR PDF 17. Fifth Schedule Customs Concessions Full substituted Fifth Schedule covering conditional customs concessions for agriculture machinery, EVs, aviation, refineries, pharma APIs, solar/power, Karachi Shipyard and other sectors. T1 National Assembly PDF 18. Standing Committee Report on Finance Bill 2026 Latest official committee amendments dated 22 June 2026, plus the full bill as reported for National Assembly consideration. T3 Local PDF brief 19. Dawn Committee Changes Report Clickable offline evidence brief for the Dawn report, with publisher metadata, the claims used, primary-source clarification and original URLs. T3 ProPakistani scrape 20. ProPakistani Major Changes User-provided update with a detailed original-versus-amended comparison; checked against the official committee report and final-passage coverage. T3 Dawn scrape 21. Dawn Final Passage Report Confirms National Assembly passage, the opposition walkout and adoption of committee-backed changes. T3 Business Recorder scrape 22. Business Recorder 35 Changes Post-passage cross-check on aircraft, mobile-phone instalments, coal, private-equity funds, steel and vehicle amendments. T3 Business Recorder scrape 23. Business Recorder Passage Report Independent confirmation that the House passed the Finance Bill with government amendments after opposition proposals were rejected. T3 Mettis Global scrape 24. Mettis Global Passage Report Additional cross-check on passage status and the broad tax areas covered by the final parliamentary vote. T1 National Assembly scrape 25. Official Passed-Bills Index Check Official index checked on 24 June. Kept as a historical source-watch note; the final Gazette PDF is now stored locally as a separate source. T1 Revenue Division PDF 26. SRO 1063-2026 Additional Customs Duty Official 30 June 2026 customs notification for additional customs duty, superseding the prior 2025 ACD notification. T1 Revenue Division PDF 27. SRO 1064-2026 Regulatory Duty Official 30 June 2026 customs notification with the regulatory duty table by PCT code and description, superseding the prior 2025 RD notification. T1 Gazette PDF 28. Gazette - Finance Act 2026 Official Gazette publication of Act No. XLIII of 2026, assented on 26 June 2026 and generally effective 1 July 2026. T1 FBR online PDF 29. FBR - Finance Act 2026 Official FBR-hosted mirror of the Finance Act. It matches source 28; the online link preserves the source trail without duplicating the 40MB local Gazette. T1 Finance Division PDF 30. Finance Division - Budget in Brief 2026-27 Official budget-book overview for headline outlay, receipts, expenditure blocks, PSDP, fiscal deficit, BISP and demand-wise estimates. T1 Finance Division PDF 31. Annual Budget Statement 2026-27 Official Article 80 budget statement covering estimated receipts, expenditures, charged/voted spending, fiscal risks and transparency statements. T1 Finance Division PDF 32. Federal Receipts Memorandum 2026-27 Official receipts detail behind FBR taxes, non-tax revenue, external receipts and Federal Consolidated Fund resources. T1 Finance Division PDF 33. Demands for Grants and Appropriations 2026-27 Official Article 82 book with summarized demands, appropriations, charged/voted expenditure and demand-wise spending detail. T1 Finance Division PDF 34. Development Budget Release Strategy FY2026-27 Official 1 July 2026 release strategy for development budget and PSDP funds, including quarterly release limits. T1 Finance Division PDF 35. Recurrent Budget Release Strategy FY2026-27 Official 1 July 2026 release strategy for recurrent budget releases under demands for grants and appropriations. T1 FBR order 36. STGO 9/2026 - Coal Value Addition Official 7 July order setting the documentary and exclusive-supply conditions for the 1% minimum value-addition tax on coal supplied to licensed coal IPPs. T1 FBR SRO 37. SRO 1082/2026 - Marine Bunkering Rules Final 7 July customs rules for marine-bunkering registration, PSW declarations, port controls, sampling, records, audits and penalties. T1 Finance Division PDF 38. Pakistan Economic Survey 2025-26 Highlights Official pre-budget baseline covering macroeconomic performance, fiscal indicators and major sector outcomes. T1 Finance Division PDF 39. Tax Expenditure Statement 2026 Official estimate of roughly Rs 2.353 trillion in revenue forgone through income-tax, sales-tax and customs concessions. T1 Finance Division PDF 40. Contingent Liabilities Statement 2026 Official fiscal-risk snapshot reporting outstanding government guarantees of Rs 4.322 trillion at end-March 2026. T1 Finance Division PDF 41. Medium-Term Performance Budget 2026-29 Official three-year performance framework linking ministry spending to outputs, outcomes and indicators. T1 PBS PDF 42. PBS Monthly Inflation - June 2026 Official price-index review reporting headline CPI inflation of 11.1% year-on-year in June 2026. T1 IMF statement 43. IMF FY2027 Budget Strategy Statement Official IMF context for the FY2027 budget strategy, including the 2% primary-surplus objective. T3 Dawn provisional 44. Provisional FY2025-26 FBR Collection Provisional reporting puts collection near Rs 13 trillion, giving a practical starting point for the Rs 15.264 trillion FY2026-27 target. T1 FBR order 45. STGO 8/2026 - Third Schedule Price Display Official mandatory printing specification for prominent, permanent display of retail price, sales tax and total price on Third Schedule packs. T1 FBR order 46. STGO 10/2026 - Iron & Steel Corporatization Official transition process linking predecessor and successor tax registrations for eligible iron/steel businesses through 31 December 2026. T1 FBR order 47. STGO 11/2026 - Footwear POS Matrix Original STGO 11 footwear framework. Its Annexure-A is replaced by STGO 19, effective 1 July 2026; use source 65 for the current matrix. T1 FBR order 48. STGO 12/2026 - Approved Steel Successors Official 31 July list adding the first eight newly incorporated iron/steel successor companies to the STGO 10 transition table. T1 Finance Division PDF 49. Basic Pay Scales & Allowances 2026 Official BPS-2026 conversion, employee option, taxable 7% relief allowance, frozen special-allowance base and revised scale table. T1 Finance Division PDF 50. Conveyance Allowance 2026 Official 50% increase in monthly federal conveyance allowance across BPS 1-22, effective 1 July 2026. T1 Finance Division PDF 51. Disparity Reduction Allowance 2026 Official 15% allowance on basic pay as at 30 June 2022 for BPS 1-22 employees already receiving the allowance. T1 Finance Division PDF 52. Federal Pension Increase 2026 Official 7% increase on baseline pension from 1 July 2026, including covered civil, defence, armed-forces and family pensions. T1 Finance Division PDF 53. Federal Austerity Measures FY2026-27 Official continuation and extension of federal expenditure controls to attached departments, SOEs, statutory bodies and regulators. T1 Finance Division PDF 54. Monthly Economic Update - July 2026 Official FY2026 close-out and early FY2027 outlook, including inflation, current account, remittances, IT exports, fiscal and monetary indicators. T1 Finance Division PDF 55. BPS-2026 Allowance Clarification Official 4 August clarification on frozen 2023/2024 ad-hoc relief allowances and notional treatment for new entrants under minimum BPS-2022. T1 Finance Division PDF 56. Defined Contribution Pension Fund Managers Official 2 August list of 16 eligible pension fund managers that executed agreements with the Federal Government for the 2024 contributory pension scheme. T1 Finance Division PDF 57. Diyat Notification FY2026-27 Official 27 July notification setting Diyat at Rs 19,352,390, the value of 30,630 grams of silver under Section 323 of the Pakistan Penal Code. T1 FBR PDF 58. Steel Electricity-Based Sales Tax Official SRO 1245(I)/2026 setting Rs 30, Rs 5 and Rs 35 per-unit categories for steel units, effective 1 July 2026. T1 FBR PDF 59. Iron and Steel Successor Corrigendum Official STGO 13/2026 correction to the A-One Re-Rolling Steel Mills entry in the voluntary-corporatization list. T1 FBR PDF 60. Confectionery Price-Printing Clarification Historical 5 August STGO 15 concession (100 pieces/Rs 5); amended on 12 August by STGO 17 to 250 pieces/Rs 10, with a 10-gram cap. See source 63 for current limits. T1 FBR PDF 61. Steel Rs 5-per-Unit Taxpayer List Original list of 31 qualifying manufacturers, superseding STGO 14. STGO 22 adds five more; see source 87 for the amendment. T1 PBS PDF 62. PBS Monthly Inflation - July 2026 Official price-index review reporting national CPI at 9.2% year-on-year and 1.2% month-on-month in July 2026. T1 FBR PDF 63. STGO 17/2026 - Confectionery Printing Amendment 2026-08-12: Raises package limit to 250 pieces, each no more than Rs 10 and 10 grams, when individual printing is impracticable. T1 FBR PDF 64. STGO 18/2026 - Seven Steel Successor Entities 2026-08-12: Adds entries 9-15 to the voluntary-corporatization successor list. T1 FBR PDF 65. STGO 19/2026 - Revised Footwear POS Matrix 2026-08-20: Replaces STGO 11 Annexure-A, effective 1 July, clarifying local/import valuation, retail value and digital-invoice conditions. T1 FBR PDF 66. STGO 20/2026 - Risk-Based Sales Tax Registration 2026-08-24: Time-bound low-risk registration and manufacturer verification; association certification does not replace statutory checks. T1 FBR PDF 67. STGO 21/2026 - Four More Steel Successor Entities 2026-08-27: Adds entries 16-19 to the voluntary-corporatization successor list, separate from the Rs 5 electricity-tax list. T1 FBR PDF 68. FBR Withholding Tax Rate Card - Tax Year 2027 available 2026-08-31: Official reference for ATL/non-ATL withholding rates; the Income Tax Ordinance prevails over errors in this non-statutory card. T1 Finance Division PDF 69. Federal Special Allowance - Rs 40,700 Gross Salary Floor 2026-08-21: From 1 July, covered federal civil employees receive a taxable, non-pensionable top-up to Rs 40,700 gross salary. T1 Finance Division PDF 70. GPF Monthly Subscriptions - BPS 2026 2026-08-13: Revised monthly GPF deductions from August salary payable 1 September 2026; schedule ranges from Rs 722 to Rs 17,605. T1 Finance Division PDF 71. GPF Mark-up - FY2025-26 2026-08-12: Sets FY2025-26 GPF mark-up at 12.05%; this is the completed fiscal year's return, not an FY2026-27 rate. T1 Finance Division PDF 72. Defined Contribution Pension Scheme - Implementation 2026-08-11: Requires focal persons and verified data for covered regular appointees from 1 July 2024, updated with AGPR within 15 days of receipt. T1 Finance Division PDF 73. Pakistan Fiscal Operations - July-June FY2025-26 published 2026-08-13: Provisional consolidated deficit 2.6% of GDP, primary surplus 2.9%, and federal tax revenue Rs 13.010413 trillion. T1 FBR PDF 74. SRO 1413/2026 - Customs Case Scrutiny Rules 2026-08-19: Final rules establish independent review of customs litigation and pending cases; effective immediately. T1 FBR PDF 75. SRO 1166/2026 - Small Shopkeepers Procedure 2026-07-27: Previously missed final notification for Tax Year 2026: voluntary 1% turnover tax for eligible shopkeepers, minimum Rs 25,000 cash, exclusions and conditions. T1 Official PDF76. Income Tax Circular 02 of 2026-278 Sep 2026: Explains Finance Act income-tax amendments, including faceless proceedings, creator income, salaried surcharge withdrawal and withholding rates. T1 Official PDF77. Sales Tax and FED Circular 01 of 202611 Sep 2026: Explains Finance Act sales-tax and excise amendments, including digital invoicing, faceless assessment and monitoring. T1 Official PDF78. SRO 1498/2026 - Refund validation4 Sep 2026: Adds four weekly validation cycles after the initial eight checks before unresolved amounts move to STARR under rules 29(2) and 39F. T1 Official PDF79. STGO 23/2026 - Four steel successor entities16 Sep 2026: Adds entries 20-23 to the voluntary-corporatization successor table; separate from electricity-tax eligibility. T1 Official PDF80. GPF profit resolution - FY2025-263 Sep 2026: Confirms 12.05% profit on GPF subscriptions and balances for the year beginning 1 July 2025; not an FY27 rate. T1 Official PDF81. M.Phil allowance - Equivalent degrees14 Sep 2026: Extends Rs 2,500 monthly allowance to HEC-recognized equivalent degrees from 17 July 2026, subject to an equivalence certificate and prescribed conditions. T1 Official PDF82. Special pay scales and contractual positions7 Sep 2026: Extends the appointment policy to contractual positions for covered federal civil servants selected through open competition in government-owned entities. T1 Official PDF83. PBS monthly inflation - August 2026August 2026; checked 19 Sep: National CPI rises 11.1% year-on-year and 1.2% month-on-month; urban 10.4% and rural 12.2% year-on-year. T1 Official PDF84. Monthly economic update - August 202631 Aug 2026; added 19 Sep: Earlier omitted release: July FY27 FBR collection Rs 820.9 billion, up 8.4%; FY26 large-scale manufacturing grows 4.98%. T1 Official PDF85. Digital proof of life and pension disbursement SOP18 Sep 2026: Supersedes the 7 September SOP. Verification at least every six months through NADRA channels; no fixed March/September schedule. Includes fallback arrangements and suspense/restoration rules. T1 Official PDF86. SRO 1525/2026 - Locally manufactured hybrids13 Sep 2026: Excludes locally manufactured hybrid electric vehicles up to 2,000cc from Table II of SRO 297(I)/2023 immediately; this is not a blanket sales-tax exemption. T1 Official PDF87. STGO 22/2026 - Steel electricity list5 Sep 2026: Adds five manufacturers, entries 32-36, to the Rs 5-per-unit list with immediate effect for all their electricity connections; eligibility remains reviewable. T1 Official PDF88. SRO 1641/2026 - Creator income computation23 Sep 2026; checked 13 Oct: SRO 1641, dated 23 September, finalizes the special procedure for covered resident persons earning from social-media interaction with users in Pakistan. Minimum income is remuneration less expenses capped at 30% of revenue. Remuneration uses the higher of actual receipts and the prescribed view-based benchmark; the YouTube benchmark is Rs 195 per 1,000 views, with evidence allowed for lower receipts. Quarterly advance tax and a dedicated return declaration apply. This is an income-computation procedure, not a new flat withholding rate. Creator rules Advance tax / definitions T1 Official PDF89. STGO 25/2026 - Own-warehouse stock transfers28 Sep 2026; checked 13 Oct: STGO 25, dated 28 September, confirms that factory-to-own-warehouse transfers under the same STRN do not require a digital tax invoice. Each consignment must carry the prescribed Stock Transfer Note; reconcile records monthly and retain them for six years. A warehouse with a different STRN requires the normal taxable-supply and digital-invoice treatment. Transfer rules Stock Transfer Note T1 Official PDF90. STGO 26/2026 - Steel input-tax restrictions28 Sep 2026; checked 13 Oct: STGO 26 adds 18 HS headings (Annexure-II entries 431-448) to the restricted input-tax adjustment list for steel melters/re-rollers, with immediate effect from 28 September. Check the product heading before claiming credits on the listed finished and semi-finished steel goods; hardship may be raised with the Commissioner-IR. This does not amend the separate electricity-tax rates or approved-entity lists. Steel credit restrictions HS headings T1 Official PDF91. SRO 1665/2026 - Faceless audit and assessment29 Sep 2026; checked 13 Oct: SRO 1665, dated 29 September, finalizes Chapter XX on faceless audit and assessment, replacing the 25 September draft. Covered cases use IRIS communications, Digital Identification Numbers and separate audit, assessment and quality-control functions. SRO 1828 subsequently notified commencement for every person or case from 15 October 2026. See the new commencement source below. Scope / commencement IRIS procedure T1 Official PDF92. Income Tax Circular 03 - TY2026 filing extension30 Sep 2026; checked 13 Oct: Circular 03, dated 30 September, extends Tax Year 2026 income-tax returns originally due on 30 September to 15 October 2026. It applies to that filing group, not every taxpayer or tax return. Circular 04 subsequently extended this filing group to 31 October 2026; see the new extension source below. Return deadline T1 Official consultation draft93. Draft SRO 1691/2026 - ATL undertaking procedure6 Oct 2026; checked 13 Oct: Draft SRO 1691, dated 6 October, proposes an IRIS Form ATL-U procedure for qualifying late-filing individuals to enter the Active Taxpayers' List without the surcharge, conditional on a six-month undertaking not to acquire property. Breach would withdraw the benefit. The document is a consultation draft; this review has not verified final implementing rules and does not treat the draft as an effective surcharge repeal. Draft only T1 Official PDF94. STGO 27/2026 - Production video surveillance7 Oct 2026; checked 13 Oct: STGO 27, dated 7 October, requires registered manufacturers, including toll manufacturers, of packaged tea, specified household electronics, paper/paperboard, edible oil/ghee and leather (including tanneries and synthetic leather) to install production video surveillance by 15 October 2026. Manufacturers bear the cost, must use authorized vendors and retain recordings for at least two months. From that deadline, covered goods cannot leave the premises unless produced under an operational system. Scope / deadline Costs / dispatch rules T1 Official PDF95. SRO 1751/2026 - Leather and paper monitoring7 Oct 2026; checked 13 Oct: SRO 1751, also dated 7 October, separately notifies immediate electronic production monitoring for registered leather and paper/paperboard manufacturers under the Sales Tax Rules. Leather / paper notification T1 Official PDF96. Income Tax Circular 04 - TY2026 filing extension15 October 2026; checked 4 November 2026. Circular 04, dated 15 October, further extended Tax Year 2026 income-tax returns to 31 October 2026 for persons originally required to file by 30 September whose deadline had moved to 15 October. The date in this circular has now passed. No later general extension was verified in this targeted review; this is not a deadline for every taxpayer or return. T1 Official PDF97. SRO 1828/2026 - Faceless audit commencement15 October 2026; checked 4 November 2026. SRO 1828 brings Chapter XX of the Income Tax Rules into force for every person or case from 15 October 2026. It supplies the commencement notification required by rule 233, updating the earlier pending-commencement position. Commencement does not mean every taxpayer has been selected for an audit. T1 Official PDF98. STGO 29/2026 - Steel production monitoring19 October 2026; checked 4 November 2026. STGO 29 requires covered registered steel melters, re-rollers and composite units, including toll, conversion and contract manufacturers, to install, integrate, test and operationalize approved production-monitoring systems at each facility and active line by 30 December 2026. The order takes immediate effect and includes production/dispatch reconciliation, authorized vendors and restrictions on unmonitored supplies. This installation deadline is separate from STGO 27 for other manufacturing sectors. T1 Official PDF99. SRO 1904/2026 - Integration tax-credit conditions26 October 2026; checked 4 November 2026. SRO 1904 finalizes rule 33U for the section 64D integration tax credit. Required equipment must be successfully integrated with FBR during the relevant tax year, directly and exclusively used for that integration, and supported by activation records and acquisition/payment evidence. Eligible investment includes purchase and one-time installation/integration costs; recurring support, maintenance, utilities, salaries, training and financing costs are excluded. General-purpose systems qualify only for a separately identifiable dedicated component. Claim in the integration year without duplicating expenditure. T1 Official PDF100. Monthly economic update - October 202629 October 2026; checked 4 November 2026. The 29 October Economic Update reports July-September FY2027 FBR collection of Rs 3,086.2 billion, up 7.0% and Rs 33.2 billion above the quarterly target. September CPI eased to 10.3% year-on-year from 11.1% in August; July-September inflation averaged 10.2%. These are period outturns, not changes to the annual budget targets. The report also records a July-August overall fiscal surplus of 0.8% of GDP and primary surplus of 1.6%; those fiscal figures cover two months, not the full quarter.

This is a plain-English budget briefing, not tax advice. Before changing payroll, pricing, imports, property deals, filings or contracts, verify the gazetted Finance Act 2026, FBR circulars and relevant SROs.