Economic stability enables relief-focused budget for all segments: Tarar

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 14th Jun, 2026) Federal Minister for Information and Broadcasting Attaullah Tarar on Sunday said the government's economic reforms and stabilization measures had created the fiscal space required to provide relief to the salaried class, exporters, retailers, the housing sector and other segments of society in the Federal Budget 2026-27.

Taking part in the budget debate in the National Assembly, the minister said every political party was discussing the budget and criticism and protest were the opposition's democratic right, but positive measures introduced in the budget also deserved appreciation.

He said the budget had provided significant relief to the salaried class, adding that no tax had been imposed on individuals earning up to Rs50,000 per month, while those earning between Rs 50,000 and Rs 100,000 would pay only one percent tax.

Tarar said there was a time when political leaders openly predicted Pakistan's default and discouraged investment in the country, while some even wagered on the country's economic collapse.

He said that when no one was willing to take responsibility for the economy, Prime Minister Muhammad Shehbaz Sharif demonstrated courage and determination by prioritizing the survival of the state over politics.

"History will remember the moment when Prime Minister Shehbaz Sharif declared that he would save the state regardless of political consequences," he added.

The minister said the Pakistan Muslim League-Nawaz assumed power under extremely difficult economic circumstances and successfully steered the country away from economic uncertainty.

Recalling the economic conditions at the time, he said inflation stood above 38 percent, the exchange rate was highly volatile, businesses faced difficulties in opening letters of credit and exporters struggled due to uncertainty in the market.

Tarar said Prime Minister Shehbaz Sharif had offered a Charter of Economy in the larger national interest and expressed the view that the country would have benefited had that proposal been accepted.

He said the present economic stability was the result of collective efforts by institutions and stakeholders, while Prime Minister Shehbaz Sharif and his team worked tirelessly to improve economic indicators.

The minister said inflation had been reduced to single digits, while the policy rate had been brought down from over 22 percent to 11 percent.

He said GDP growth, which stood at minus 0.2 percent when the previous government left office, had increased to 3.7 percent, while per capita income had risen from 1,751 Dollars to 1,901 dollars.

Tarar said foreign exchange reserves had increased to 17.2 billion dollars and now provided nearly three months of import cover.

He said workers' remittances had reached 33.9 billion dollars, registering a nine percent year-on-year increase and setting a new record.

The minister said IT exports had reached 3.8 billion dollars, including a contribution of 995 million dollars from freelancers.

He said the fiscal deficit, which stood at eight percent in 2022, had been reduced to 0.7 percent of GDP.

Tarar said the world acknowledged Pakistan's economic stabilization and the government's efforts to restore confidence in the economy.

Highlighting reforms in the Federal board of Revenue (FBR), he said the government had eliminated the culture of recommendations and introduced transparent posting and transfer mechanisms.

He said any attempt to influence customs or tax officials through recommendations would now result in strict action.

The minister said billions of rupees remained stuck in tax litigation in the past due to collusion and stay orders, but the government had established merit-based tribunals and appointed legal professionals on merit, leading to substantial recoveries.

He said sectors such as sugar, tobacco, cement and beverages had previously escaped effective monitoring, but technology-based systems had improved oversight.

Tarar said Rs 60 billion had been recovered from the sugar industry alone in taxes.

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He said under the leadership of Prime Minister Shehbaz Sharif, the finance ministry and FBR teams collected Rs800 billion through enforcement measures during the previous year, creating fiscal space for relief to salaried and underprivileged segments of society.

The minister said the previous governments also had the opportunity to implement such measures but remained focused on political narratives instead.

He said the FBR had introduced a faceless appraisal system that would eventually be expanded nationwide, eliminating direct interaction between taxpayers and tax collectors and reducing opportunities for corruption and leakages.

Tarar said FBR reforms had introduced transparency and helped establish a fair system under which tax-compliant citizens would no longer bear the burden of those who avoided taxes.

He said around 3.6 million retailers who were previously outside the tax net were being brought into the formal system through a fixed-tax mechanism.

The minister said the Bill and Melinda Gates Foundation had provided free support for the digitalization of the FBR, while the government continued to engage international partners for institutional reforms and investment promotion.

Referring to the prime minister's recent visit to China, he said agreements were reached with Alibaba and the company subsequently announced investment in Pakistan.

Tarar said special relief had been provided to the housing and development sector through the budget, which would benefit not only homeowners but also a range of allied industries.

He said the Apna Ghar scheme was providing major relief to low-income and middle-class families and helping deserving citizens secure housing opportunities.

The minister said export-led growth would significantly benefit the national economy by promoting industrial expansion, employment generation and economic activity.

He said exporters' longstanding demand regarding advance tax had been addressed, while the government had also reduced minimum tax and abolished super tax for all exporters on the directions of Prime Minister Shehbaz Sharif.

Tarar said these decisions followed an extensive consultation process involving industrialists, chambers of commerce, the IT sector, agriculture stakeholders and other sectors of the economy.

He said customs duty on imported agricultural equipment had been reduced, while sales tax on shipping services had been cut from 18 percent to zero percent.

The minister described the budget as a budget for all segments of society, including farmers, labourers, shopkeepers, retailers and salaried individuals.

He said the government had abolished the so-called "pink tax" by reducing taxes on women's hygiene products from 18 percent to zero percent.

Tarar added that taxes on contraceptives had also been reduced from 18 percent to zero percent to support efforts related to population management.

Describing the budget as relief-oriented, he said Pakistan was entering a period of economic prosperity as a result of sustained reforms and prudent economic management.

The minister said Prime Minister Shehbaz Sharif had spent every moment of the past year striving to create fiscal space for public relief and had fulfilled his commitment to provide relief whenever economic conditions permitted.

He said the budget had accommodated the demands of various sectors and represented the beginning of a new phase of economic growth.

In his concluding remarks, Tarar urged all political stakeholders to consider Pakistan's dignity and prestige above partisan interests.

He said Pakistan was receiving increasing recognition at the international level and the world was acknowledging the efforts of Prime Minister Shehbaz Sharif and Field Marshal Syed Asim Munir for peace and stability.

The minister said Pakistan's economy was moving on the path of progress and development and that the country's international standing had improved significantly.