Economy moving in right direction: FinMin signals shift from stability to growth

The finance minister emphasizes that the government has prioritized relief for low-income segments

ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-June 13rd, 2026) Finance Minister Muhammad Aurangzeb announced that Pakistan’s economy is now moving in the right direction, marking a critical transition from stabilization toward sustainable growth.

Addressing a post-budget press conference in Islamabad, the Finance Minister detailed key relief measures, sectoral incentives, and structural reforms aimed at reviving the national economy.

The finance minister emphasized that the government has prioritized relief for low-income segments.

Income Tax Reductions: The 5% tax bracket on lower-salaried individuals has been slashed to 1%, while the 15% slab has been reduced to 13%. Conversely, Aurangzeb noted that the government has received positive feedback on higher tax rates and surcharge measures applied to upper-income brackets.

Real Estate & Construction: To stimulate economic activity, the government has significantly reduced taxes on the construction sector.

Highlighting agriculture as a backbone for growth, the minister announced a 15% increase in agricultural credit, pushing its total volume past the Rs. 2 trillion mark.

Support for Small Farmers: Smallholders will no longer be required to mortgage their homes to secure loans, and the ongoing fertility scheme is progressing successfully.

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Customs Exemptions: To modernize farming, customs duty, additional customs duty, and regulatory duties on the import of agricultural machinery have been completely abolished.

Youth Loans: The Prime Minister’s Youth Loan Scheme has been expanded to Rs. 262 billion, with Rs. 125 billion specifically ring-fenced for agricultural initiatives.

Aurangzeb reiterated that the budget focuses heavily on reforming the tax structure and boosting national exports.

"We have ensured actionable steps are integrated into this budget to drive exports, supported by an additional subsidy of Rs. 70 billion for key sectors."

However, the minister sounded a note of caution regarding the energy sector, acknowledging that pressure on the country's energy infrastructure remains high and is expected to persist into the upcoming fiscal year.

Concluding his address, Muhammad Aurangzeb expressed gratitude to the provincial governments for their cooperation and financial support to the Federal center, confirming that this collaborative fiscal arrangement will continue for the next three fiscal years.