Islamabad: Finance Minister Muhammad Aurangzeb has announced that the budget for 2025-26 includes significant measures, such as tariff reforms, aimed at increasing the competitiveness of Pakistan’s exports. Addressing a post-budget news conference in Islamabad, he highlighted the reduction of additional customs duty to zero on four thousand out of seven thousand tariff lines, along with a decrease in customs duty on 2700 tariff lines. These reforms are expected to reduce the cost of raw materials and intermediary goods, thereby enhancing industrial productivity and boosting exports.

According to Radio Pakistan, the Finance Minister described these tariff reforms as the most crucial step taken in the last thirty years, emphasizing the continuation of structural reforms. He noted that despite fiscal constraints, the government aimed to provide relief to employees by linking salary and pension increases with inflation. The government’s expenditure has seen a minimal increase of less than two percent.

Regarding the agricultural sector, the Finance Minister revealed that, although an additional tax on fertilizer and pesticides was initially considered, it was not imposed following the Prime Minister’s directives. He reiterated agriculture’s role as a key growth driver for the economy and committed to working with provinces to support small farmers, including providing them with loans.

The Finance Minister projected the tax-to-GDP ratio to reach 10.3 percent this year and 10.9 percent the next year. He attributed enhanced revenue collection to improved enforcement and announced forthcoming legislation to further strengthen enforcement measures.