ISLAMABAD: Pakistan’s government is preparing a federal budget that aims to avoid new taxes on the public while increasing efforts to improve tax collection through enforcement and technology-driven reforms, Finance Minister Senator Muhammad Aurangzeb said.

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Government prioritises tax compliance reforms Economic stability remains key objective Agriculture seen as major opportunity

The approach could affect millions of taxpayers, businesses, and consumers as the government seeks to boost revenue without increasing the tax burden. The strategy comes ahead of the Budget 2026-27 announcement and during continued economic reforms aimed at maintaining stability and controlling inflation.

Speaking to Geo News, Aurangzeb said the government is focused on broadening the tax base through improved compliance, digitisation, and stronger enforcement rather than introducing additional taxes on existing taxpayers.

“The effort is to minimise the financial burden on the people in the upcoming budget,” the finance minister said.

Government prioritises tax compliance reforms

According to Aurangzeb, reforms under consideration include greater automation within the Federal Board of Revenue (FBR), wider use of digital systems, and measures to document more sectors of the economy.

The government believes these steps can improve revenue collection by bringing more individuals and businesses into the tax net while reducing reliance on higher tax rates.

Pakistan is expected to unveil its federal budget amid ongoing discussions with the International Monetary Fund (IMF) and efforts to strengthen public finances while supporting economic growth.

Economic stability remains key objective

The finance minister said reducing inflation and maintaining economic stability remain central objectives of the government’s economic agenda.

He also called for political cooperation on economic issues, urging political parties to support measures aimed at strengthening the economy rather than engaging in political confrontation.

Agriculture seen as major opportunity

Aurangzeb highlighted agriculture as a sector with significant growth potential, particularly through the adoption of modern farming practices.

He said some farmers have achieved wheat yields of 60 to 70 maunds per acre using advanced agricultural methods, demonstrating the potential for higher productivity.

The minister added that Prime Minister Shehbaz Sharif is closely monitoring challenges facing the agriculture sector and believes increased agricultural output could help expand Pakistan’s exports and contribute to long-term economic growth.

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