Pakistan’s Prime Minister Announces Tax Reforms & Business-Friendly Policies in Upcoming Budget

Prime Minister Shehbaz Sharif announced on June 3, 2026, that the government is implementing measures to bring the informal economy into the tax net as part of the upcoming budget. The announcement was made during a meeting with a delegation of industrialists and businessmen to consult on the budget and discuss the pace of national economic growth.

During the session, the prime minister stated that a strong partnership with the private sector serves as a guarantee of economic growth. He emphasized that the core of Pakistan’s economic policy is centered on export-led growth.

The government intends to promote industries that increase domestic production and boost exports to create maximum job opportunities. Prime Minister Shehbaz noted that development within the information technology, agriculture, and industry sectors is expected to further stabilize the economy. To support this, the government has launched technical and vocational training programmes for the youth.

The Prime Minister’s Office (PMO) reported that the premier believes business-friendly policies have restored the confidence of foreign investors and stabilized the economy.

Infrastructure and Technological Initiatives

The business delegation was briefed on several infrastructure projects intended to improve trade and inland access. These include the upgradation of the M-10 Motorway and the development of a paperless freight corridor to improve access from the ports in Karachi.

the government is proceeding with the construction of the M-13 Motorway, connecting Kharain and Rawalpindi, which is intended to reduce travel distance between Islamabad and Lahore. The delegation also received updates on the upgradation of the ML-1 and ML-2 railway projects.

On the technological front, the government is developing a National AI Transformation Plan. The PMO noted that the installation of video analytics within the cement and sugar sectors has already resulted in improved revenue collection.

Legal and Tax Reforms

The government is introducing reforms to tax tribunals to expedite the resolution of tax cases. The delegation was informed that recruitments for these tribunals were conducted through a transparent process. A committee has been established to create special commercial courts.

Business leaders expressed their support for these tax reforms and the general ease of business operations. They specifically praised the government’s vision to promote a documented economy and the use of digital payments.

Business Community Response

The delegation expressed gratitude to the prime minister for several specific fiscal measures, including the abolition of the export development levy, the reduction of electricity tariffs for industries, and the assurance of timely tax refund payments.

The business leaders also acknowledged the diplomatic efforts of the prime minister and his team to restore regional peace, specifically referencing Pakistan’s role in mediating between Iran and the United States during the conflict in the Middle East.

The delegation provided recommendations to the prime minister on the budget and strengthening the economy, offering full cooperation to the government regarding economic development.

The meeting included prominent business figures such as Mian Muhammad Mansha, Muhammad Ali Tabba, Arif Habib, Musadaq Zulqarnain, Zeelaf Munir, Atif Bajwa, and Ziad Bashir.

Also in attendance were federal ministers including Musadik Malik, Azam Nazeer Tarar, Rana Tanveer Hussain, Attaullah Tarar, Ahad Khan Cheema, Ali Pervaiz Malik, Shaza Fatima Khawaja, and Awais Leghari.