Finance Minister Muhammad Aurangzeb has described the 2025–26 federal budget as a relief budget, aimed at easing financial pressure on the salaried class, boosting businesses, and protecting vulnerable segments of society. Speaking before the Finance Standing Committee of the National Assembly in Islamabad, he outlined key areas of support across various sectors.
Support for Salaried Class and Corporates
The budget introduces significant relief for the salaried class. The minister confirmed that the government has adjusted tax brackets to offer more take-home pay. At the same time, the corporate sector will benefit from reduced taxes, which the government hopes will encourage investment and job creation.
No Tax on Agriculture Sector
Aurangzeb emphasized that the agriculture sector remains untaxed. This decision aims to maintain affordability in food production and support the livelihoods of farmers during economic recovery.
Massive Allocation for Social Welfare
The government has earmarked over Rs. 700 billion for the Benazir Income Support Programme (BISP). This allocation will help more than ten million low-income families meet their basic needs. The minister stated this initiative remains a top priority for poverty alleviation and social protection.
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Boost for Construction and Small Businesses
To stimulate growth and employment, the construction industry has been offered targeted incentives. Additionally, the government will extend financing options to small and medium-sized enterprises (SMEs), enabling them to expand operations and contribute to economic development.
Export Growth Through Lower Tariffs
The minister also stressed the government’s focus on expanding exports. Tariffs and duties on imported raw materials will be reduced to help local manufacturers stay competitive. This move is expected to lower production costs and attract more foreign buyers.
A Balanced Approach
Aurangzeb said the budget reflects a balance between economic discipline and social responsibility. By avoiding new taxes in critical areas and offering relief to multiple sectors, the government aims to drive inclusive growth while keeping inflation in check.
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