ISLAMABAD: Adviser to Federal Minister for Finance Khurram Schehzad has said that due to economic stability, the government has presented a growth-oriented federal budget for the next fiscal year, maintaining balance between relief, growth and fiscal responsibility.
He said budget was a shift from burdening to broadening, and the relief measures announced for corporate sector, salaried class, agriculture sector, exporters, industry and construction sector would benefit the overall national economy.
Addressing the Post-Budget Conference 2026 organised by Institute of Chartered Accountants of Pakistan (ICAP) here, he said that no new taxes have been imposed in the federal budget for the upcoming fiscal year.
Rather the super tax on exports has been completely abolished, while the tax on exports has been reduced almost by half.
The interest rate on export financing was also maintained at 4.5% while market interest rates are in access of 12%.
Khurram Schehzad further stated that the 10% super tax on businesses earning between Rs. 150 million and Rs. 500 million has also been abolished. For businesses earning more than Rs. 500 million, the super tax rate has been reduced from 10% to 8%, he added.
He said several measures have been taken to promote the agricultural sector, including the removal of duties on agricultural financing and imports while providing interest-rate and collateral-free loans to small farmers.
The construction sector, he said, has also been provided tax relief, while multiple steps have been introduced to support industrial growth and provide relief to salaried individuals.
Overall, the adviser said, these significant measures were expected to accelerate growth on a sustainable basis.
He further stated that the fiscal deficit, which stood at record 8% in 2022, has now declined to 0.7% in nine months of the FY26 while the Current Account remained surplus as well.
“Such improvements increase the economy’s ability to withstand shocks. Owing to economic stability, the government has been able to present a growth-focused budget,” he added.
Khurram Schehzad said that efforts would be made to achieve tax revenue targets through natural growth, broadening and compliance and enforcement.
The government,he said, was now shifting its taxation model from burdening to broadening, with a New Faceless Tax Operating Model.
He added that reforms in taxation and various other sectors were ongoing.
Khurram Schehzad said that Pakistan’s IT Exports reached record 4.2 billion dollars in 11 months of FY26, while freelancers generated 1.6 billion dollars in 11 months of FY26.
He emphasized that the right direction has been determined, and Pakistan possessed both the capacity and the commitment to move forward.
The conference was attended by leaders of corporate sector, heads of businesses, eminent professionals, top government officials, dignitaries and members of the Institute.
