Finance minister says budget supports exporters, salaried workers, construction, agriculture, and business growth through tax cuts and incentives.
Image: Minute Mirror
Finance Minister Muhammad Aurangzeb said the 2026-27 budget fulfills the government’s promise to move from economic stability to economic growth.
He highlighted export-led growth as the budget’s main focus. Measures include abolishing advance tax for exporters, reducing super tax from 10% to 8%, and proposing its complete removal for exporters.
The government has allocated about Rs71 billion in subsidies to provide exporters financing at a low 4.5% rate. Duties on imported raw materials have also been reduced to lower production costs.
Aurangzeb said the budget offers relief to the salaried class through lower income tax rates. Transaction taxes on property have also been cut to support construction and housing.
For agriculture, financing has exceeded Rs2 trillion. Small farmers will benefit from the digital, collateral-free Zarkhez Scheme and youth-focused agriculture loans.
The finance minister also announced reduced duties on imported agricultural machinery and greater use of automation and AI in tax administration to improve efficiency.
Minister of State for Finance Bilal Azhar Kayani called it a budget for salaried workers, exporters, industrialists, home builders, and businesses. He said the government consulted business groups nationwide before finalizing relief measures.
The federal budget totals Rs18.8 trillion, around 20% higher than last year’s revised spending. Despite expected provincial support, the government projects a Rs7 trillion fiscal deficit and plans to secure $23.4 billion in foreign financing.
