Finance Minister Muhammad Aurangzeb on Saturday defended the federal budget for FY2026–27, saying the government has introduced measures aimed at supporting export-led growth and addressing concerns raised by stakeholders.

Speaking to reporters, Aurangzeb said the budget seeks to create “all enabling factors” for export-driven expansion, pointing to steps such as the abolition of advance tax and changes to the super tax regime.

The government has proposed the complete removal of the super tax across six income slabs, while the rate for individuals earning above Rs500 million annually would be reduced from 10% to 8%.

The minister said the government remains focused on narrowing the trade deficit while placing increasing emphasis on the services sector, particularly information technology.

On Friday, Aurangzeb presented a Rs18.77 trillion federal budget for FY2026–27, offering tax relief to salaried individuals and incentives for exporters, as well as the real estate and construction sectors, in an effort to revive industrial activity and support economic growth.

The government has set a revenue target of Rs15.264 trillion for the next fiscal year, marking a 17.6% increase compared with revised estimates of Rs12.983 trillion for the current year, despite an estimated revenue shortfall of around Rs1 trillion.

According to the budget, Rs8.045 trillion has been allocated for interest (markup) payments.

Aurangzeb said the economy is projected to grow by 4% in FY2026-27, with average inflation expected at 8.2%.

He added that the fiscal deficit is targeted at 3.6% of GDP (Rs5.226 trillion), while the primary surplus is projected at 2%, in line with IMF-mandated fiscal discipline.