Finance Minister Aims for Export-led Growth in Budget 2026-27

Finance Minister Muhammad Aurangzeb unveiled the Federal Budget 2026-27, aimed at fostering export-led, sustainable and inclusive economic growth. He emphasized expanding the tax base and supporting key productive sectors without overburdening existing taxpayers.

The budget includes measures to boost productivity and create employment opportunities, with a focus on broadening and deepening the tax net alongside reforms for equity and fairness in taxation. Tax relief measures are set for salaried individuals, small businesses, export and construction sectors, while concessional financing is introduced for agriculture and exports.

Aurangzeb highlighted the “Zarkhez” scheme providing interest-free and collateral-free loans worth Rs300 billion to around 750,000 small farmers, and the Prime Minister’s Youth Business and Agriculture Loan Scheme offering Rs109 billion in loans. Import duty relief worth Rs2 billion was introduced for agricultural modernization, with duties on machinery and equipment abolished.

The budget has received positive feedback from both inside and outside parliament, with key economic indicators showing improvement including 6.5% growth in large-scale manufacturing and a current account surplus during the first 11 months of the fiscal year. Remittances reached $4.25 billion last month, expected to touch $41 billion for the full year, while IT exports grew by 20%, reaching a projected $4.5 billion.

The National Assembly held detailed discussions on charged expenditures, including pensions, parliament, judiciary, debt repayments, and other constitutional institutions. Minister of Parliamentary Affairs Dr Tariq Fazal Chaudhry urged constructive engagement from the opposition to strengthen parliament, while Minister of State for Law Aqeel Malik rejected objections to charged expenditures, emphasizing reforms for speedy justice. The House will meet again on Sunday at 11am.