Federal Information Minister Attaullah Tarar presented the key features of the federal budget for the fiscal year 2026–27 during an online briefing on Wednesday, emphasizing that this budget is distinct from previous ones and primarily designed to provide relief to the public.
Both Tarar and Minister of State for Finance Bilal Azhar Kayani addressed questions and defended the government’s economic policies during the session. Tarar expressed confidence that the budget, crafted with a focus on relief, has even received acknowledgment for its positive aspects from some critics. However, he noted that certain opposition members continue to criticize the government’s initiatives without constructive reasons.
Tarar highlighted significant structural reforms, especially within the Federal Board of Revenue (FBR), which have created fiscal space. He explained that the government eliminated the previous culture of recommendations at the FBR and replaced it with a merit-based system. Additionally, he pointed out the introduction of a faceless appraisal system at ports, which has fully digitized customs procedures, reducing processing times from weeks to days.
He further mentioned that major industries such as sugar, tobacco, cement, and beverages are now under stricter surveillance through digital tools like barcode tracking and cameras. These measures have generated approximately Rs60 billion in additional revenue from the sugar sector and helped recover nearly Rs800 billion through enforcement efforts.
Regarding tax relief, Tarar stated that salaried individuals have been granted significant concessions, including exemption for incomes up to Rs50,000 and a reduced tax rate of 1 percent for incomes up to Rs100,000. Supporting the salaried class was a central priority of the budget.
Exporters have also been aided by the removal of advance tax and super tax, alongside a reduction in export refinancing rates to 4 percent to enhance their competitiveness. Tarar noted that incentives for housing, youth loan schemes, IT facilitation, and duty exemptions on agricultural machinery imports are part of the government’s efforts to stimulate economic growth and modernize key sectors.
Minister of State for Finance Bilal Azhar Kayani added that the government has abolished taxes on sanitary products, aiming to ease financial burdens on women.
Tarar elaborated on initiatives targeting youth and the IT sector, stating that the Prime Minister’s Youth Programme is expected to benefit around 550,000 young individuals through loans and training. He emphasized that the IT and freelance sectors remain exempt from additional taxation, reflecting government priorities.
He also highlighted ongoing efforts to enhance human capital through agricultural innovation, sports development programs, and expansion of education initiatives such as Danish Schools and universities.
In a significant development, Tarar criticized the economic instability during the Pakistan Tehreek-e-Insaf (PTI) government, recalling a period when the country was on the brink of default. He described how foreign exchange reserves were dangerously low, imports were difficult to finance, and the rupee experienced severe volatility. Inflation had soared to 38 percent with expectations of further increases, interest rates exceeded 22 percent, and remittances had dropped sharply.
He alleged that some officials even took leave to avoid being held responsible for a potential default. Tarar credited the Pakistan Muslim League-Nawaz (PML-N) leadership, under the vision of Muhammad Nawaz Sharif and Prime Minister Shehbaz Sharif, for stabilizing the economy. He acknowledged that successful negotiations with the International Monetary Fund (IMF) played a crucial role in averting default and restoring economic confidence.
