ISLAMABAD, Jun 18 (APP):Minister for Finance and Revenue Senator Muhammad Aurangzeb on Thursday reiterated that Pakistan’s economy had entered a sustainable growth phase after achieving macroeconomic stability, with GDP growth rising to 3.7 percent in the outgoing fiscal year from 3.1 percent last year. Winding up the debate on the Federal Budget 2026-27 in the Senate, he appreciated the recommendations of the Senate Standing Committee on Finance, parliamentarians, business associations, …
Economy in growth phase as GDP rises to 3.7%: Aurangzeb reiterates
ISLAMABAD, Jun 18 (APP):Minister for Finance and Revenue Senator Muhammad Aurangzeb on Thursday reiterated that Pakistan’s economy had entered a sustainable growth phase after achieving macroeconomic stability, with GDP growth rising to 3.7 percent in the outgoing fiscal year from 3.1 percent last year.
Winding up the debate on the Federal Budget 2026-27 in the Senate, he appreciated the recommendations of the Senate Standing Committee on Finance, parliamentarians, business associations, chambers of commerce and other stakeholders for their constructive engagement during extensive consultations.
The minister said the government had successfully transitioned from economic stabilisation to growth, recalling that the economy was contracting nearly three years ago.
Despite regional and global challenges, he added, key economic indicators had improved and growth momentum had strengthened.
Aurangzeb said efforts had been made to ease the tax burden on the documented corporate sector and the salaried class, informing the House that super tax on exporters had been abolished, while the first six slabs of super tax had been removed and rates for higher income brackets reduced.
He said targeted relief had been provided to salaried individuals through lower tax rates and expanded income slabs, with the highest tax rate now applicable at a higher income threshold.
Highlighting support for the IT sector, the minister said the existing 0.25 percent fixed tax regime for IT exports had been maintained. Pakistan’s IT exports, he noted, were expected to reach around $4.5 billion during the current fiscal year, while freelance exports had touched approximately $1.6 billion.
He said the government was investing in digital connectivity, skills development and advanced technologies, including artificial intelligence and block-chain, to equip youth with future-ready skills and boost export earnings.
Aurangzeb said agriculture had been given special emphasis, with Rs300 billion allocated for concessional lending to small farmers without collateral. He added that duties and taxes on modern agricultural machinery, including harvesters and tractors, had been reduced or eliminated to enhance productivity.
Referring to youth empowerment, he said Rs110 billion had been earmarked under the Prime Minister’s Youth Programme to promote entrepreneurship, skills development and job creation.
The minister said major reforms were under way in the Federal Board of Revenue (FBR) to reduce human interaction, curb corruption and eliminate harassment of taxpayers through digitization and automation.
He said broadening the tax base remained critical for achieving economic self-reliance and reducing dependence on external financing, adding that improved fiscal management had strengthened the government’s capacity to respond to emergencies using domestic resources.
Concluding the debate, Aurangzeb thanked senators for their input and assured the House that constructive proposals would be considered in the short and medium term to further strengthen the country’s economic trajectory.
