Islamabad: Finance Minister Muhammad Aurangzeb announced that the federal budget for 2026-27 is poised to significantly advance the nation’s economic growth. Addressing a post-budget news conference in Islamabad, the Finance Minister emphasized the strategic measures included in the budget to foster export-led growth and strengthen various sectors of the economy.

According to Radio Pakistan, Aurangzeb, accompanied by Minister for Information and Broadcasting Attaullah Tarar and Minister of State for Finance Bilal Azhar Kayani, highlighted the budget’s focus on utilizing available fiscal space to drive economic development. The Finance Minister noted the positive reception from different sectors, indicating increased confidence in the country’s economic trajectory.

Key initiatives in the budget include an expanded Export Refinance Scheme, aimed at maintaining financial accessibility for exporters at a rate of 4.5 percent. Aurangzeb underscored the government’s commitment to reducing costs for intermediate goods and raw materials to boost export competitiveness.

Further, Aurangzeb indicated a strong focus on the agriculture sector, with agri-financing exceeding two trillion rupees and the removal of custom duties on agricultural equipment imports to enhance mechanization and productivity. Tax relief measures extend to the salaried class and the construction sector.

Efforts to broaden the tax base involve a shift towards automation and artificial intelligence to enhance transparency and efficiency, minimizing human involvement in tax administration. Information Minister Attaullah Tarar described the budget as inclusive and relief-oriented, highlighting special allocations for educational institutions in underdeveloped areas.

Finance Secretary Imdad Ullah Bosal clarified that ad hoc relief allowances from 2022 and 2025 have been integrated into basic pay, with a subsequent seven percent salary increase post-merger. No changes have been made to the petroleum levy, as confirmed by Aurangzeb during the session.