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Budget 2026-27 cuts taxes to spur investment and growth

Pakistan's proposed budget for fiscal year 2026-27 aims to provide broad-based tax relief to salaried workers, businesses, exporters and the construction sector as the government seeks to support economic growth and investment.


Presented by Finance Minister Muhammad Aurangzeb, the budget proposes lower income tax rates for several salaried income brackets, abolishes the 10% surcharge on salaried individuals and includes a 7% pay increase for government employees and pensioners. The minimum wage is also proposed to rise by 10%.