Finance Minister Muhammad Aurangzeb said the federal budget for fiscal year 2026-27 is aimed at supporting the lower-income salaried class while providing relief to key sectors, including exporters, agriculture and housing.

Addressing a post-budget press conference in Islamabad, Aurangzeb said the government’s priority remained export-led growth and that the budget included measures to move the economy from stabilisation toward growth.

The press conference was also attended by Information Minister Attaullah Tarar, Minister of State for Finance Bilal Azhar Kayani, Finance Secretary Imdadullah Bosal, Federal Board of Revenue Chairman Rashid Mahmood Langrial and Tax Policy Office head Najeeb Memon.

Aurangzeb said the government had taken steps to support exporters, including the proposed abolition of super tax for all exporters and additional financing support of around Rs70 billion to Rs71 billion. Business Recorder reported that the Export Finance Scheme mark-up rate had been reduced from 19 percent to 4.5 percent.

He said reducing the cost of production was a key part of the government’s plan, adding that duties on imported raw materials had been cut. The finance minister said exports of goods and services were important for the economy and described recent export figures as encouraging.

The minister said the construction and housing sectors had also been given relief through reduced taxes on property transactions. He said the housing sector remained important for economic activity and job creation.

Aurangzeb said agriculture financing had increased by 15 percent and that the government planned measures for small farmers. He also said Rs262 billion had been allocated for youth loans, while taxes on imported equipment used in the agriculture sector had been removed.

On petroleum levy, the finance minister said the overall limit was not being increased, but adjustments continued between petrol and diesel. He said the government was monitoring oil supply and prices amid regional tensions.

Aurangzeb said the government remained in regular consultation with the International Monetary Fund. Reuters reported that Pakistan’s proposed Rs18.77 trillion budget for FY2026-27 seeks to keep the IMF programme on track while targeting 4 percent growth and 8.2 percent inflation.

The finance minister said economic stability was not an end point but a basic requirement for growth. He said local investment would have to come first before foreign investors could be expected to enter the market.

Minister of State for Finance Bilal Azhar Kayani said the budget delivered relief promised by Prime Minister Shehbaz Sharif to the public and the salaried class. He said the salaried class had carried a significant tax burden and had been a focus of the government’s relief measures.

Information Minister Attaullah Tarar said the fiscal space used for relief in the budget was created through two years of work. He also said the government had taken steps to end the culture of recommendations and influence in the Federal Board of Revenue.

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