Category: Latest News

ISLAMABAD: The federal government has set an ambitious target of Rs1.677 trillion in Petroleum Levy (PL) collections on petroleum products for FY2026-27, marking an increase of nearly 11.8 percent or Rs178.5 billion over the revised estimate of Rs1.498 trillion for the outgoing fiscal year. Energy sector experts believe the government may further increase the petroleum levy to as much as Rs100 per litre, following the removal of the statutory cap through amendments to the Petroleum Levy Ordinance. Successive governments have increasingly relied on petroleum levy revenues as they are not…

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ISLAMABAD: The federal government on Friday announced a Rs3.675 trillion development outlay for FY2026-27, with the second phase of the China-Pakistan Economic Corridor (CPEC-II) standing out as the only significant new project in an otherwise continuity-focused development programme. The overall development budget comprises a Rs1 trillion Public Sector Development Programme (PSDP), Rs2.224 trillion in Provincial Annual Development Programmes (ADPs), and Rs451 billion in development spending by state-owned enterprises (SOEs). Presenting the federal budget, Finance Minister Muhammad Aurangzeb stated that more than 60 percent of federal development priorities are concentrated in…

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KARACHI: The federal budget for FY2026-27 introduced limited changes for Pakistan’s auto sector, with policymakers opting to defer major reforms until the announcement of the forthcoming Auto Policy 2026-31, expected to take effect from July 1 following approval by the prime minister and federal cabinet. Presenting the budget, Finance Minister Muhammad Aurangzeb stated that the new auto policy is currently under review by the Prime Minister’s Committee and will be presented before Parliament once finalized. EV Incentives Extended As part of the government’s push toward cleaner transportation, incentives on the…

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KARACHI: Pakistan’s business community has given a cautious reception to the federal budget for FY2026-27, acknowledging several tax relief measures while expressing disappointment over the absence of a comprehensive strategy to accelerate exports, strengthen manufacturing, and attract investment. Industry representatives described the Rs18.7 trillion budget as a blend of modest incentives and missed opportunities, arguing that it lacks the bold reforms needed to drive sustainable economic growth and enhance Pakistan’s global competitiveness. FPCCI Welcomes Relief Measures, Calls for Growth-Focused Reforms Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President…

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ISLAMABAD: Adhering to key conditions set by the International Monetary Fund (IMF) while attempting to stimulate economic activity, Finance Minister Muhammad Aurangzeb on Friday unveiled the federal budget for FY2026-27, featuring tax relief for salaried individuals, businesses, exporters, and the real estate sector alongside enhanced allocations for defence and social protection. Presenting his third federal budget, the finance minister outlined a strategy focused on boosting productivity, exports, agricultural output, and the information technology sector while maintaining fiscal discipline under the IMF programme. A major feature of the budget is a…

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