Finance minister addresses post-budget press conference

Pakistan's Finance Minister Muhammad Aurangzeb has unveiled the budget for FY26-27, signaling a significant shift in fiscal policy. A key proposal involves freezing provincial transfers for three years, a move designed to reallocate resources towards national security needs and implement relief measures across critical economic sectors.

The budget targets the revival of struggling economic activity through a multi-pronged approach. It introduces new taxation on social media earnings and establishes a fixed tax scheme for small traders and shopkeepers. Additionally, the government plans to increase the minimum tax rate for wholesalers and retailers.

In an effort to promote sustainable transport, the budget offers incentives for small electric vehicles and bikes. Conversely, it imposes barriers on luxury electric vehicles. These measures collectively aim to stimulate the economy while addressing security requirements and providing targeted support.