Finance Minister Muhammad Aurangzeb addressed a post-budget press conference in Islamabad, outlining key priorities of the federal budget 2026-27 and defending the government’s economic direction. He said the economy is moving in the right direction and stressed that Pakistan is now shifting from stability toward sustained growth.
During the briefing, he highlighted that the government has taken several steps to support export-led growth, including reforms in taxation and removal of certain advance taxes. He added that these measures aim to create a more business-friendly environment that encourages investment and strengthens the export sector over time.
Furthermore, the finance minister described the abolition of the super tax for large businesses and exporters as a major policy shift. He said this decision reflects a broader strategy to support competitiveness, improve liquidity, and strengthen confidence among investors operating in Pakistan’s export-driven industries.
Aurangzeb also announced that Rs70 billion in additional subsidies has been allocated to exporters, allowing access to financing at a reduced rate of 4.5%. He explained that this initiative is designed to enhance export performance, improve cash flow, and support long-term industrial expansion across key sectors.
On the agriculture front, he said the government has abolished customs duties on agricultural machinery and increased agricultural lending beyond Rs20 billion. He added that total agricultural credit has now exceeded Rs2 trillion, while schemes like Zarkhez-e-Asaan are improving access to finance for farmers without requiring excessive collateral.
In addition, the minister confirmed major tax relief measures across multiple sectors, including construction, IT, agriculture and salaried individuals. He said lower income tax brackets have been significantly reduced, while the IT sector retains the Final Tax Regime to ensure stability, and further incentives aim to support freelancers, youth employment and overall economic participation.