ISLAMABAD – Prime Minister Shehbaz Sharif has instructed officials to include substantial relief measures for the manufacturing and construction sectors in the upcoming federal budget, sources confirmed Monday.
According to official sources, the prime minister issued these directions after reviewing proposals submitted by industry stakeholders. He emphasized the need to reduce the cost of doing business, especially for productive sectors of the economy.
As part of the proposed relief package, the government is likely to eliminate withholding tax on raw material imports for industries. Officials believe this step will significantly reduce tax refund claims and simplify the tax process for manufacturers.
In addition, the construction sector may also benefit from reduced withholding taxes on key materials. The government expects these measures to stimulate economic activity and attract more investment in housing and infrastructure projects.
Furthermore, budget proposals suggest removing withholding tax on property transactions. There is also a strong possibility that the federal excise duty on property buying and selling will be abolished to boost the real estate market.
Finally, a special session with the International Monetary Fund (IMF) will be held to seek approval for these tax relief measures. The government hopes to convince the IMF that the proposed steps will support economic growth while maintaining fiscal discipline.