Finance Minister Muhammad Aurangzeb described the proposed FY2026-27 budget as a major step toward economic growth. He shared further details while addressing a press conference in Islamabad on Saturday.
The minister said the government made significant progress toward creating a stronger and more sustainable economy. Moreover, he stressed that the budget supports an export-led growth strategy.
Government Focuses On Exports And Business Relief
Aurangzeb said the government introduced several measures to improve the business environment. He recalled the decision to abolish an advance tax to encourage investment and exports.
Furthermore, he described the removal of the super tax for businesses earning above Rs 500 million as significant. However, he said Prime Minister Shehbaz Sharif directed the government to abolish the super tax for all exporters.
The minister also highlighted financing measures supporting the export sector. Consequently, the government proposed an additional Rs 70 billion subsidy to strengthen the existing refinancing scheme.
Meanwhile, Aurangzeb said tariff reforms remain part of the government’s five-year economic plan. He explained that lower tariffs would reduce production costs for intermediate goods and raw materials.
IT Sector And Salaried Class Receive Relief
The finance minister stressed the importance of reducing Pakistan’s trade deficit through stronger exports. Additionally, he said services exports, especially information technology, would play a larger economic role.
Therefore, the government decided to maintain the 0.25 percent Final Tax Regime for the IT sector. He said the decision followed consultations with the IT industry, freelancers and PASHA.
Aurangzeb also highlighted tax relief for salaried employees. The government reduced the five percent tax slab to one percent. Similarly, it lowered the 15 percent slab to 13 percent.
He said these measures would provide greater relief to lower-income salaried taxpayers while supporting overall economic growth.
