Pakistan is gearing up to unveil its 2026-27 federal budget, signaling major relief for businesses, real estate, SMEs, and the salaried class. Finance Minister Muhammad Aurangzeb assured business leaders in a virtual meeting that super taxes will be abolished or significantly reduced, while a real estate stimulus package and incentives for overseas investors are expected.

Remittances from Dubai have surged amid Middle East tensions, bringing fresh capital into the country. Proposed measures also include rollback of Section 7E, reduced export taxes, and easier financing for SMEs. Key industries like IT, pharmaceuticals, mining, agriculture, and industrial sectors are set to benefit from tax cuts, affordable financing, and simplified regulations.

Business leaders emphasized the need for a growth-oriented, competitive financial framework, recommending a simplified tax system, broader tax net with moderate rates, and pre-budget consultations to avoid post-budget uncertainty. They urged targeted incentives to boost exports, timely refunds, flexible adjustment systems, and measures to reduce energy and operational costs, ensuring local industries remain competitive regionally.

Chambers also highlighted the importance of sector-specific industrial policies, gradual digitalization of tax systems, and pro-investment measures to attract both domestic and foreign capital. SMEs were specifically recommended easy regulations and access to affordable credit, while industrial machinery and raw materials would see tax reductions to fuel expansion.