Muhammad Aurangzeb

Pakistan's Finance Minister Muhammad Aurangzeb announced an AI-led tax administration model to minimize human intervention, alongside plans to launch Eurobonds, sukuk, and dollar-settled rupee-linked bonds. The government successfully issued a $250 million Panda Bond in 2026 with strong investor demand and emphasized export-led growth, reduced taxes, and increased lending to key sectors like SMEs and agriculture.

Pakistan abolished an 18% sales tax on sanitary products in its 2026–27 budget to address period poverty, following a constitutional petition by women’s rights activist Mahnoor Omer and tax lawyer Ahsan Jahangir Khan. The move, supported by Unicef Pakistan, aims to reduce costs for millions of women, though campaigners note ongoing challenges in combating menstrual stigma and affordability.

The Pakistani government transferred management control of Pakistan International Airlines (PIA) to a consortium led by Arif Habib Corporation, completing the privatisation process. The Privatisation Commission confirmed the first financial closing of the transaction after meeting 40 conditions precedent, including regulatory and commercial approvals.

President Asif Ali Zardari approved the Finance Bill, 2026, outlining the Rs17.5718.8 trillion budget for FY2026-27. The bill includes tax reforms, exemptions for electric vehicles and mineral water, and amendments from the National Assembly Standing Committee on Finance. The National Assembly passed the budget after rejecting opposition amendments.

The government secured parliamentary approval for the FY27 budget, which aligns with IMF requirements but lacks meaningful structural reforms. Finance Minister Muhammad Aurangzeb emphasized growth potential under stable energy prices, though the budget perpetuates reliance on consumption, remittances, and real estate, with minimal progress on tax system improvements or export-led growth strategies.

The National Assembly approved a supplementary budget of Rs593.64 billion for FY2024-25 and Rs475.05 billion for FY2025-26. Finance Minister Muhammad Aurangzeb presented the proposals under constitutional provisions, with detailed allocations for sectors like power, defense, health, and education.

The National Assembly passed the Finance Bill 2026, scrapping a proposed tax on low-sugar mineral water and hydration drinks, granting tax breaks for local airlines importing aircraft parts, and adjusting excise duties on electric vehicles based on their dollar value. Traders with turnover up to Rs200 million may opt out of a fixed tax regime, and income from private equity and venture capital funds is now tax-exempt.

The National Assembly passed the FY2026-27 budget after the opposition staged a walkout. Opposition Leader Mehmood Khan Achakzai criticized the government and claimed his speech was censored. Prime Minister Shehbaz Sharif highlighted Pakistan's role in mediating US-Iran talks and expressed hope for a lasting agreement.

Finance Minister Muhammad Aurangzeb presented a budget with tax relief for high-earning individuals, concessional loans for farmers, and subsidies for fertilizers and farm equipment. However, the budget is criticized for lacking a coherent industrial policy to drive sustainable, export-led growth and for relying on real estate as a growth engine, a strategy with a history of structural weaknesses in Pakistan.

Finance Minister Muhammad Aurangzeb stated that the proposed FY27 budget aims to accelerate sustainable economic growth observed in the past two years. The budget faced Senate recommendations and debates, with some reservations raised, but Aurangzeb emphasized it is broadly seen as pro-growth. He addressed concerns about discrepancies in GDP growth and methodology, clarifying that no changes were made to economic indicator reporting methods.

The government assured the PTI that it would discuss with the IMF the extension of tax exemptions for the merged Fata and Pata districts, which expire on June 30. A meeting between government officials and PTI representatives highlighted concerns over the tax exemptions and emphasized dialogue as a democratic foundation.

A BYD delegation led by Liu Xueliang and Aly Khan met Pakistan's Finance Minister Muhammad Aurangzeb, highlighting the country's potential as a market for new energy vehicles. The meeting discussed BYD's plans for local manufacturing, technology transfer, and infrastructure development in partnership with Mega Motor Company, with production expected to begin in 2026.

The budget debate in Pakistan's National Assembly nearly turned violent as lawmakers exchanged harsh words and accusations. Finance Minister Muhammad Aurangzeb is set to deliver a winding-up speech, with cut motions to follow. PPP leaders defended BISP allocations and demanded increased funding for agriculture.

Finance Minister Muhammad Aurangzeb described the Tax Asaan Scheme for traders as a 'paradigm shift' to expand the tax net, emphasizing a 1% tax rate and a digital model with no human intervention. He highlighted blockchain upskilling for freelancers and welcomed the US-Iran deal as a positive economic development.

Pakistan's Finance Minister Muhammad Aurangzeb emphasized economic planning mindful of external and geopolitical risks during a meeting with UK Parliamentary Under-Secretary Hamish Falconer. Discussions covered regional stability, structural reforms, and strengthening Pakistan-UK economic cooperation.

Pakistan's Finance Minister Muhammad Aurangzeb noted potential economic benefits for 2027 from the US-Iran conflict resolution but emphasized it is too early to revise budget projections. He highlighted damaged energy infrastructure delaying supply chain normalization and outlined plans to shift creditor profiles via commercial borrowing while maintaining an IMF-supported fiscal framework.

A potential US-Iran peace deal may stabilize Pakistan's economy amid global growth concerns. Pakistan's Finance Minister projects 4% growth, while economists warn of risks if tensions resume, including blocked shipping routes and higher oil prices. Reduced remittances and fiscal challenges could pressure Pakistan's currency and debt servicing.

The Pakistani government's 2026-27 budget reveals a record Rs3.684 trillion overspending, contradicting claims of fiscal discipline. Finance Minister Muhammad Aurangzeb seeks parliamentary approval for supplementary grants, with major overruns in debt servicing, power sector, defense, and health expenditures.

A Senate panel approved a 5% tax on earnings from social media platforms by local and foreign digital content creators under the Finance Bill 2026. The proposal includes exemptions for annual income up to Rs600,000 and a 5% tax on earnings between Rs600,000 and Rs1.2 million, with debates over potential impacts on foreign exchange inflows and digital earners.

Pakistan's 2026-27 budget faces risks including a $40-per-barrel oil price increase adding 0.8pc to fiscal deficit, natural disasters threatening 1.5pc fiscal impact, tax exemptions causing 1.3pc budget losses, and state-owned entities draining 0.4pc. The finance ministry identified seven key fiscal vulnerabilities linked to global oil prices, GDP growth, revenue shortfalls, and climate impacts.

Pakistan's Finance Minister Muhammad Aurangzeb presented a budget aiming to balance relief, growth, and fiscal consolidation, but it faces challenges in revenue collection and tax reform. The government claims a shift from stabilization to growth, yet reliance on untested mechanisms for tax collection and unresolved structural issues like low tax-to-GDP ratios remain critical risks.

Finance Minister Muhammad Aurangzeb outlined key measures in the FY26-27 budget, including abolishing the super tax for businesses and exporters, introducing a Rs70 billion subsidy for refinancing schemes, and reducing tax slabs for the salaried class. The budget also proposes taxes on social media earnings, incentives for electric vehicles, and efforts to boost export-led growth, particularly in IT and construction sectors.

The 2026-27 budget aligns with IMF fiscal targets, freezes provincial transfers for three years, and introduces new taxes on social media earnings and traders while offering relief to salaried individuals, exporters, and real estate sectors. It includes a 7% salary and pension increase, a higher minimum wage, and tax cuts for certain income brackets and industries.

The Pakistani government allocated Rs3 trillion for defense in the 2026-27 budget, a 17.65% increase from the previous year's Rs2.55 trillion, citing security concerns along the Indian border, Afghan border tensions, and militant threats. The allocation accounts for 2.08% of GDP and 16% of the total federal outlay, with Rs967.55 billion earmarked for military salaries and allowances.

Pakistan's finance minister presented a new budget with an 18% increase in defense spending, reduced funding for development programs, and modest tax reliefs for salaried workers. The budget aims for 4% economic growth and 8.2% inflation amid regional tensions and an ongoing IMF-supported $7 billion program requiring fiscal reforms.

The federal budget for FY2026-27 is set to be presented by Finance Minister Muhammad Aurangzeb in Parliament today, featuring new tax measures worth Rs660-700 billion and targeted relief for mid- to upper-income earners. The government aims to expand the tax net through initiatives like the Fixed Tax Asaan Scheme and has reached an agreement with coalition partners to cut expenditures to address a Rs800 billion revenue shortfall.

Pakistan's government reported a 3.37% decline in tax exemptions to Rs2.353 trillion in FY26, the first reduction in seven years, despite initial high figures and revisions. The decline follows seven consecutive years of increases and comes amid revenue shortfalls, with exemptions impacting federal-provincial revenue sharing.

The Economic Survey 2025-26 reveals missed economic targets and a freeze on provincial development programs, diverting over Rs900bn to the Centre’s strategic needs. Finance Minister Muhammad Aurangzeb highlighted resilience amid global trade challenges, floods, and regional conflicts, while announcing budget incentives for agriculture and housing.

Pakistan's Economic Survey 2026 highlights economic recovery with growth at 3.7pc and reduced inflation, but warns of structural challenges like low investment, high energy costs, and a regulatory environment deterring transformative capital. Sectors like agriculture and manufacturing show growth, but productivity and sustainable investment remain critical issues.

The National Assembly suspended PTI lawmaker Muhammad Iqbal Khan Afridi for the entire budget session due to allegations of misconduct with staff, security personnel, and police. Speaker Sardar Ayaz Sadiq cited repeated violations of parliamentary decorum, including abusive language and threats, leading to a majority-approved motion by PML-N legislator Farah Naz Akbar.

Finance Minister Muhammad Aurangzeb is presenting the Pakistan Economic Survey (PES) for FY2025-26. He highlighted the survey's reflection of resilience and discipline during the previous year.

Finance Minister Muhammad Aurangzeb will present the federal budget for FY2026-27 on June 12. The Pakistan Economic Survey for FY2025-26 will be launched after 2:20pm the next day. A consensus was reached between the federal government, PML-N, and PPP on the budget framework, including freezing provincial shares in the NFC award.

The budget delay highlights a fiscal deadlock between Pakistan's federal government and provinces over frozen NFC shares and additional funding demands. Critics argue the Centre is undermining the 18th Amendment and 7th NFC Award by pressuring provinces to return funds, risking a backdoor revision of the fiscal arrangement.

President Asif Ali Zardari emphasized provincial rights, public welfare, and economic stability in the upcoming 2026–2027 federal budget during a meeting with Prime Minister Shehbaz Sharif. The discussion included officials and leaders from allied parties, with the PPP expressing concerns about taxation and advocating for broader tax bases to ease inflation pressures.

The Economic Coordination Committee (ECC) approved Rs40 billion in supplementary grants and a Rs100bn financing facility for Pakistan State Oil (PSO), which faces over Rs900bn in receivables from state-owned enterprises. Additional funds were allocated for parliamentarians’ schemes, expanded special honoraria for ministries, and projects like the Pakistan Navy’s Hangor Project.

The Pakistani government introduced the 'Fixed Tax Asaan Scheme' to simplify tax compliance for small traders with annual turnover up to Rs200 million. The scheme allows a 1% tax rate via a simple form, offers exemptions from audits and POS requirements, and imposes fines on non-participants. It replaces the failed Tajir Dost Scheme and includes optional participation for traders.

Pakistan is exploring various methods to repay a loan from the United Arab Emirates. Pakistani Finance Minister Muhammad Aurangzeb is involved in discussions regarding the debt repayment strategy.