Aurangzeb says Budget 2026-27 marks shift from stability to growth

-- Budget delivers transition from economic stability to sustainable Growth, says Aurangzeb

-- Exporters to get Rs71bn support package, financing at 4.5pc

-- Agriculture, construction and IT sectors earmarked as major growth engines

-- AI-driven tax reforms, digitalisation to broaden tax net and reduce human intervention

ISLAMABAD: Finance Minister Muhammad Aurangzeb on Saturday said the federal budget for fiscal year 2026-27 delivers on the government’s commitment to transition Pakistan’s economy from stabilisation to sustainable growth, with a strong focus on exports, industrial competitiveness, investment and job creation.

Addressing a post-budget press conference alongside Information Minister Attaullah Tarar, Minister of State for Finance Bilal Azhar Kayani, Finance Secretary Imdadullah Bosal, Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial and senior officials, Aurangzeb said the government had fulfilled the promise made last year to move beyond economic stabilisation and lay the foundations for growth.

“The key themes of this budget are export-led growth and creating an enabling environment for businesses,” the finance minister said.

He announced a series of measures aimed at boosting exports, including the abolition of advance tax and the proposed elimination of super tax for exporters. The government has also allocated around Rs71 billion in export financing subsidies, enabling exporters to access financing at a concessionary rate of 4.5 per cent.

Aurangzeb said customs duties on imported raw materials and intermediate goods had been reduced to lower production costs and enhance the competitiveness of Pakistani exports in international markets.

Highlighting the importance of the information technology sector, the finance minister said the government had decided to maintain the 0.25pc Final Tax Regime (FTR) for IT exporters and freelancers. He expressed confidence that exports of goods and services would continue to grow significantly in the coming year.

The minister said the government had also attempted to provide relief to the salaried class by reducing tax rates in lower income slabs, while acknowledging that further efforts were needed to ease the burden on taxpayers.

Referring to the construction sector, he said the budget included reductions in transaction-related taxes to stimulate housing activity, describing construction as a key driver of economic growth and employment generation.

Aurangzeb also highlighted measures to support agriculture, noting that agricultural financing had surpassed Rs2 trillion after a 15pc year-on-year increase. He said the government’s digital and collateral-free “Zarkhez” scheme was helping small farmers gain access to credit without requiring property or personal guarantees.

He added that customs duties, additional customs duties and regulatory duties on value-added agricultural machinery had been reduced or eliminated to improve productivity and crop yields.

The finance minister said the government was continuing efforts to digitise and modernise the tax system through automation and artificial intelligence, reducing human intervention and improving compliance.

“We want to take tax administration towards automation and AI while minimising human interaction,” he said.

Minister of State for Finance Bilal Azhar Kayani described the budget as one focused on salaried individuals, exporters, industrialists, homeowners and small businesses.

He said the government had delivered relief to taxpayers while responding to demands raised by the business community during extensive consultations held ahead of the budget.

Kayani also highlighted social-sector measures, including the removal of sales tax on sanitary and hygiene products and exemptions for contraceptives to support women’s health and population management efforts.

Information Minister Attaullah Tarar termed the budget “relief-oriented” and praised ongoing reforms within the FBR, describing them as unprecedented and aimed at improving transparency through digital and faceless systems.

He said measures introduced in the budget would enhance export competitiveness, support housing development, promote documentation of the economy and encourage cashless transactions.

Responding to questions, Aurangzeb warned that rising global energy prices and disruptions linked to tensions in the Middle East could continue to affect Pakistan’s economy into the next fiscal year.

He noted that Pakistan’s oil import bill had increased sharply in April and cautioned that disruptions to energy supply chains and shipping routes would not be resolved quickly.

The finance minister also confirmed that discussions with provinces regarding fiscal arrangements and resource sharing would continue, while emphasising that broadening the tax base and improving enforcement remained central objectives of the government’s economic agenda.

The federal budget unveiled on Friday proposes a total outlay of Rs18.8 trillion and seeks to balance growth-oriented measures with fiscal discipline under Pakistan’s ongoing reform programme.