Pakistan is likely to present its federal budget for fiscal year 2026-27 in the first week of June, as preparations gather pace and consultations with the International Monetary Fund (IMF) are set to begin, sources said on Wednesday.

Sources said the economic team has formally started budget working papers, with an IMF delegation expected to arrive in early May for discussions.

Initial proposals include relief measures for various sectors and a reduction in slab-wise income taxes for salaried individuals. Recommendations from business chambers to improve ease of doing business are also under consideration.

Officials are reviewing proposals to gradually reduce the super tax and streamline the Benazir Income Support Programme (BISP) by enhancing its efficiency and outreach.

At the same time, plans are under discussion to withdraw selected income and sales tax exemptions across sectors. Changes to tax policies for special economic zones are also likely, including the possible rollback of certain tax incentives.

Energy pricing reforms are part of the upcoming fiscal plan, with mechanisms being developed to adjust electricity and gas tariffs in a timely manner.

Sources in the finance ministry said initial budget work will be completed soon, while final proposals will be incorporated after IMF consultations. The visiting IMF team is expected to stay in Islamabad for at least two weeks to review and approve key measures.