Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has declared that the Federal Budget 2026-27 is going to lay the foundation for export-led economic growth in Pakistan, reported 24NewsHD TV channel.
Winding up the budget debate in the National Assembly on Saturday, Senator Aurangzeb recalled that MNAs have presented their opinions on the proposed budget during the debate, adding reservations were also voiced in some proposals. “But, we have gotten very clear feedback from within and outside the House that this is overall a positive and pro-growth budget, which sets the foundation to accelerate the sustainable growth witnessed over the last two years,” he added.
Aurangzeb said an improvement had been witnessed in the export sector as IT exports had gone up by 20 percent. The minister said the government had presented people’s-friendly budget. “We have substantially increased salaries and pensions of the government employees,” he said, adding furthermore, taxes on the employees had been reduced as well.
He said the government had made it easier for retired employees to receive their pension. “Now they can receive their pensions while sitting at their homes.”
“The government has also reduced taxes on property and agriculture,” the minister elaborated.
Aurangzeb informed that the government was increasing cooperation with China in the agriculture sector. “The government is going to build ‘Agricultural Cold Storage’, on which Rs7.1 billion will be spent,” he said, adding an amount had been allocated in the budget for farmers so that they could borrow loans on easy instalments.
On remittances, he said that during the last few months, overseas Pakistanis had sent $4.2 billion back home; an amount, which will reach $41 billion at the end of the ongoing year.
He went on to say that headway had been made on several fronts. “We have introduced basic reforms in the tax system,” he informed.
He said that the government improved economic indicators during the ongoing FY. “Our foreign exchange reserves are stable,” he added.
The minister said that it was due to the efforts made by Field Marshal Asim Munir and the government that finally a peace deal was struck between Iran and the USA. “I congratulate the Field Marshal and the government on that,” he said.
Speaking about the budget proposals, Aurangzeb stated that a “sustainable and inclusive export-led growth that increases productivity” was the fundamental objective of the government and the budget. “We often hear and see that the documented corporate sector and salaried class have to bear most of the tax burden. The government has changed this trend and thinking in the budget, and focused on deepening and broadening rather than burdening,” he contended.
“We had initiated this change in the last budget and clarified our direction. In this budget, we have taken additional and concrete initiatives regarding it,” the finance minister affirmed. He added the burden of existing taxpayers — particularly the salaried class, small businesses, exporters and industrialists — would be reduced under the FY27 budget, keeping in mind the “principles of equity and fairness”.
“We have ensured the provision of concessional loans for importers and the agriculture sector,” Aurangzeb said, emphasising that the Fixed Asaan Tax Scheme has been introduced to broaden the tax net.
Elaborating on reforms brought in the tax sector in the past two years, he said: “We have detached tax policy from tax administration. We are introducing a new tax operational model in the continuation of these reforms, under which the interaction between a taxpayer and a tax officer will be removed.
“The process of audit, identification and implementation will be conducted through an automatic system,” he said, adding these reforms aimed to end discretionary powers and prevent harassment through digitisation and promote transparency.
Responding to remarks made by some lawmakers on the Federal Board of Revenue’s (FBR) performance, Aurangzeb said while the government welcomed constructive criticism but stressed the need to consider the context.
Presenting a “comparative analysis”, he noted that an additional $14 billion were collected in revenues from 1988 to 2011. “Similarly, additional revenues of $14b were collected in the next 13 years from 2011 to 2024. Compared to this, in the brief period of the past two years, our government has secured additional revenues of $14b,” he stated.
On the discussions held about the agricultural sector during the budget debate, Aurangzeb affirmed the sector was the “backbone” of Pakistan’s economy and the government had announced satisfactory relief and developmental packages for farmers. He noted the Zarkhez-e-Scheme had been initiated, under which interest-free and collateral-free loans were being provided to 750,000 small-scale farmers.
He further said Rs9.5b have been allocated in the FY27 budget for subsidies in the Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYB&ALS), under which loans worth more than Rs109bn will be given.
To keep fertiliser prices within control, a package of Rs15.8b has been announced in the budget, which includes a Rs10b subsidy on urea fertiliser, he said and went on to mention the Rs4.2b earmarked for development programmes in the agriculture and livestock sectors. He added an import duty relief worth Rs2bn was being given to abolish duties on tractors, combined harvesters and other equipment to modernise agriculture.
“I specifically want to mention that we are expanding agricultural cooperation with China,” Aurangzeb said, noting Pakistani students and experts were being trained on the subject.
The minister said that the NA had saved Rs5b by taking austerity measures, while the Senate saved Rs1b.
Aurangzeb thanked all MNAs and senators who participated in the debate, especially Leader of the Opposition in the NA Mahmood Khan Achakzai and finance committees’ chairmen.
The minister said he intended to include some of the proposals given by the lawmakers in the money bill.
He also thanked the leaders of the parties in the ruling coalition by name, describing their leadership as “very important in preparing the budget”.
Concluding his speech, Aurangzeb stressed that “national consensus was extremely important in the economic and financial recovery”. He requested all stakeholders to continue their cooperation for the country’s economic development.
Lawmakers call for adoption of Senate proposals
Earlier in the day, lawmakers during the budget debate on Senate recommendations on the Finance Bill called for incorporating key proposals aimed at easing inflation and providing relief to the public.
Speaking on the Senate’s recommendations, MNA Aliya Kamran urged the government to consider them. She supported reducing the advance tax on telecom services under Section 236 of the Income Tax Ordinance, 2001, from 15 per cent to 8 per cent, saying it would benefit mobile and internet users and help expand digital access in education, business, and employment.
She also backed reductions in GST on essential items, including food, medicines, education materials, and agricultural inputs, saying lower taxation would ease pressure on low-income households.
On the energy sector, she supported targeted electricity subsidies for low-consumption users, reforms to address capacity payments and circular debt, and a cap on the petroleum levy with greater transparency in its collection and use.
She stressed that Balochistan required special attention in development funding and project execution.
MNA Umair Khan Niazi said the Senate’s role in financial legislation had become largely symbolic under Article 73 of the Constitution, arguing that it had weakened provincial autonomy.
He also pointed to inconsistencies in budget priorities, including the withdrawal of funds from youth programmes while continuing support for projects such as the Prime Minister’s e-sports arena, calling for a more consistent youth policy.
MNA Naeema Kishwar expressed concern over the absence of tax relief for the merged districts of Khyber Pakhtunkhwa, recalling commitments made during their integration. She supported a 15 per cent salary increase for government employees amid inflation and called for stronger funding for higher education, research, and local governments, saying insufficient transfers to local bodies were affecting grassroots service delivery. She also backed relief for the agriculture sector, describing it as the backbone of the economy.
MNA Malik Muhammad Amir Dogar called for comprehensive relief for farmers, including withdrawal of the proposed income tax on the fertiliser sector and reduction of taxes on inputs such as seeds, pesticides, diesel, and machinery.
He said rising production costs had severely affected agriculture and required urgent policy action. He also supported restoring allowances for university faculty and researchers, as well as medical allowances for federal employees and pensioners frozen since 2015. He proposed at least a 15 per cent salary increase for government employees and subsidies for low-income electricity consumers. On infrastructure, he backed increased allocations for the Hyderabad–Sukkur Motorway and regional energy projects.
Former National Assembly Speaker Asad Qaiser opposed the proposed nine per cent tax on tobacco crops, saying that it would burden farmers instead of manufacturers. He said taxation should instead be imposed on finished tobacco products, while supporting higher taxes on cigarettes.
MNA Muhammad Shabbir Ali Qureshi called for equitable development across regions, particularly in southern Punjab, saying development funds were not being distributed fairly. He highlighted delays in major university and infrastructure projects in Muzaffargarh and Rajanpur and urged improved urban infrastructure, including sewerage and drainage systems in Kot Addu.
MNA Muhammad Atif raised concerns over inconsistent taxation in the aviation sector, urging uniform relief for all airlines and passengers. He said selective exemptions could distort competition and called for equal treatment of all stakeholders.
MNA Sahibzada Sibghatullah called for early completion of delayed projects, particularly the N-45 highway linking Chakdara to Gilgit via the Lowari Tunnel. He said despite approvals, work had not begun and also pointed to delays in Upper Dir PSDP schemes, suggesting stalled projects be transferred to relevant development bodies for completion.
PTI Chairman and MNA Gohar Ali Khan stressed the need for a permanent and well-funded disaster management system. He called for joint federal and provincial contributions to a dedicated disaster risk fund, saying recent floods had exposed serious gaps in district-level preparedness and the country’s largely reactive response system.
MNA Ayesha Nazir urged effective implementation of Senate recommendations in education, research, and economic sectors. She supported improved pension schemes for public universities, higher research funding, innovation support, and retention of skilled professionals. She also called for raising the income tax threshold for low-income groups, reducing GST on essential items, and introducing fair electricity tariffs for low-usage households.
MNA Shahzada M Gustasam Khan called for targeted development in neglected regions, including Tanawal, saying uniform policies could not address deep regional disparities and that special interventions were needed for balanced growth.
Finance Minister Senator Muhammad Aurangzeb thanked members of both Houses’ finance committees for their input, saying the recommendations would be incorporated into the budget.
Reporter Rozina Ali