Growth-Oriented Budget 2026 Presented Amid Economic Stability: Khurram Schehzad
IMRAN ALI KUNDI ISLAMABAD
Adviser to Federal Minister for Finance, Khurram Schehzad, stated that due to economic stability, the government has presented a growth-oriented federal budget for the next fiscal year, where a balance has been kept between relief, growth, and fiscal responsibility. He emphasized that the budget marks a shift from burdening to broadening, and the relief measures announced for the corporate sector, salaried class, agriculture sector, exporters, industry, and construction sector will benefit the overall national economy.
Addressing the Post-Budget Conference 2026 organized by the Institute of Chartered Accountants of Pakistan (ICAP) here on Friday, he said that no new taxes have been imposed in the federal budget for the upcoming fiscal year. 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 is also maintained at 4.5 percent while market interest rates exceed 12 percent.
Khurram Schehzad further stated that the 10 percent super tax on businesses earning between Rs150 million and Rs500 million has also been abolished. For businesses earning more than Rs500 million, the super tax rate has been reduced from 10 percent to 8 percent. He added that several measures have been taken to promote the agricultural sector, including the removal of duties on agricultural financing and imports while providing interest-free and collateral-free loans to small farmers.
The construction sector has also been provided tax relief, while multiple steps have been introduced to support industrial growth and provide relief to salaried individuals. Overall, these significant measures are expected to accelerate growth on a sustainable basis. He further stated that the fiscal deficit, which stood at a record 8 percent in 2022, has now declined to 0.7 percent in 9MFY26, while the current account stands in 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.
Khurram Schehzad said that efforts would be made to achieve tax revenue targets through natural growth, broadening, and compliance and enforcement. The government is now shifting its taxation model from burdening to broadening, he said, with a New Faceless Tax Operating Model. He added that reforms in taxation and various other sectors are ongoing.
Khurram Schehzad said that Pakistan's IT exports reached a record $4.2 billion in 11 months of FY26, while freelancers generated $1.6 billion in 11 months of FY26. He emphasized that the right direction has been determined, and Pakistan possesses both the capacity and the commitment to move forward.
The conference was attended by leaders of the corporate sector, heads of businesses, eminent professionals, top government officials, dignitaries, and members of the institute.
