The federal government is preparing the 2026–27 budget with a strong focus on economic growth and business-friendly policies, with expected relief for the real estate sector, exporters, SMEs, and salaried individuals.
According to sources, Finance Minister Muhammad Aurangzeb has indicated that super taxes may either be abolished or significantly reduced.
The government is also working on a real estate stimulus package, plans to remove tax on deemed or fictitious income, and new incentives to encourage overseas Pakistanis to invest in the country.
Proposed tax reforms include possible changes to income tax laws, including revisiting Section 7E. Meanwhile, increased remittances from the Middle East—especially Dubai—are providing additional support to the economy.
Relief for salaried individuals, lower tax rates for export industries, and improved access to financing for SMEs are key measures under consideration. Major sectors such as IT, pharmaceuticals, mining, minerals, and agriculture are also expected to benefit from targeted reforms.
The government is focusing on boosting exports and improving liquidity, with plans for incentives on additional exports, import substitution, faster tax refunds, and more flexible financial adjustments to ease pressure on businesses.
Business leaders have also called for investor-friendly policies, including reduced taxes on machinery and raw materials, affordable financing, and sector-specific support.
In addition, there is a push to simplify regulations for SMEs, expand access to credit, and gradually digitize the tax system to improve transparency and attract both local and foreign investment.
