The government has managed to give much demanded relief to major segments of the society in Rs 18.771 trillion budget 2026-27.
Finance minister , Muhammad Aurangzeb , presented third budget of the Shahbaz government in the National Assembly on June 12 ,2026.
The budget brings relief to the salaried class as the government raised salaries of the employees and pensions by 7% and the same time rationalise rates of income tax for salaried class. Its not a big relief as the salaried class is under huge financial pressure for the last couple of years due to rising inflation and it deserved better increase in salaries and pensioners were equally rightful for more raise, but funds paucity pushed the decision -makers to give only 7 % increase in both salaries and pensions for 2026-2027.
The government employees may voice concern over less increase in salaries in the budget , but they knew the government limitations so will settle down at 7 % increase in the salaries at the end. The same equation will work for the pensioners.
The government gave reasonable relief to other stakeholders –Real Estate Sector and Businesses. The budget reduces taxes on real estate businesses by half and its a good decision. The relief in taxes can woo investment for real estate sector in coming months and its stimulation can generate activity across Pakistan’s industries and businesses. Second , reduction in super tax is a very important decision .
The major businesses and trade bodies were demanding of the government trust super tax was saying away investment from Pakistan and it was necessary to completely abolish super tax. The government has proposed to abolish super tax for businesses earning profit up to Rs 200 million and reduced the tax for the above sealing from 10 % to 8%.
Trade bodies including the Federation of Pakistan Chambers of Commerce ,Trade and Industries have appreciated reduction in super tax and hoped that the government decision will encourage investors to invest in Pakistan in the coming years.