Islamabad: Adviser to Federal Minister for Finance, Khurram Shehzad, announced that the government has introduced a federal budget focused on economic growth for the forthcoming fiscal year, ensuring a balance between relief measures, growth, and fiscal responsibility. This budgetary shift emphasizes broadening rather than burdening, aiming to stimulate key sectors of the national economy.

According to Press Information Department, Shehzad made these remarks at the Post-Budget Conference 2026 organized by the Institute of Chartered Accountants of Pakistan. He highlighted that the budget does not introduce new taxes and includes significant reforms, such as abolishing the super tax on exports and reducing export tax rates by nearly half. The interest rate on export financing remains at 4.5%, in contrast to prevailing market rates exceeding 12%.

Shehzad also noted the abolition of the 10% super tax on businesses with earnings between Rs. 150 million and Rs. 500 million, and a reduction of the super tax rate from 10% to 8% for businesses earning over Rs. 500 million. The agricultural sector benefits from duty removals on financing and imports, alongside interest-rate and collateral-free loans for small farmers.

Tax relief has been extended to the construction sector, with additional measures supporting industrial growth and providing relief to salaried individuals. These initiatives are expected to drive sustainable economic growth.

He reported a decline in the fiscal deficit from a record 8% in 2022 to 0.7% in the first nine months of FY26, alongside a surplus in the Current Account. These improvements enhance the economy’s resilience, enabling the presentation of a growth-focused budget.

Shehzad emphasized efforts to meet tax revenue targets through natural growth and a shift to a New Faceless Tax Operating Model, alongside ongoing reforms in taxation and other sectors. He highlighted Pakistan’s record IT exports of $4.2 billion and $1.6 billion generated by freelancers in 11 months of FY26, underscoring the nation’s capacity and commitment to progress.

The conference gathered leaders from the corporate sector, business heads, professionals, government officials, dignitaries, and Institute members.