Govt unveils Rs18.8tr budget for FY2026-27; GDP growth targeted at 4pc

Pakistan's Finance Minister Muhammad Aurangzeb presented the Rs18.8 trillion budget for fiscal year 2026-27, targeting a GDP growth of 4% and an average inflation of 8.2%. Key proposals include income tax cuts for high earners, reduced withholding tax on foreign card transactions, complete withdrawal of taxes on sanitary pads and contraceptives, and an extension of the Final Tax Regime for IT and freelance exporters. The budget also allocates funds for the PM's housing scheme and the National Artificial Intelligence Ecosystem Development Programme, while increasing salaries, pensions, and the BISP budget amidst parliamentary protests and a focus on increasing production capacity and exports.