In a major policy shift, Finance Minister Muhammad Aurangzeb announced that Pakistan’s Tax Policy Office will now operate under the Ministry of Finance, moving away from the Federal Board of Revenue (FBR). The minister stated that the 2026 budget for FY27 will be prepared and presented by the Finance and Tax Policy Office, not the FBR.
Speaking at a workshop on ‘Unlocking Capital Market Potential for Banks’, organized by the Securities and Exchange Commission of Pakistan (SECP) and Pakistan Banks Association (PBA), Aurangzeb emphasized that the move reflects the government’s strategy to enhance economic stability and sustainable growth.
The finance minister also revealed that the government is finalizing an industrial policy aimed at accelerating industrialization, crediting Special Assistant to the Prime Minister Haroon Akhtar for driving the policy through cabinet approval.
“This is a key pillar for transitioning from stability to sustainable growth,” Aurangzeb said, adding that recent government initiatives include policies on tariffs, electric vehicles, cashless economy, and the digital sector.
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Highlighting tariff reforms, Aurangzeb noted plans to reduce customs duties, additional customs duties, and regulatory duties over the next four to five years to improve export competitiveness and eliminate prolonged protection for certain industries. He stressed that these reforms are entirely home-grown, developed with support from institutions like the World Bank, and not influenced by the IMF.
Aurangzeb also proposed the creation of a Capital Market Development Council to strengthen domestic capital markets, including the Pakistan Stock Exchange (PSX). The council would include key stakeholders such as the SECP, State Bank of Pakistan, PBA, corporations, insurance companies, and provincial representatives to mobilize funds for development projects.
The minister expressed disappointment at the corporate sector’s absence during the workshop, emphasizing the importance of corporate participation in debt and equity mobilization for Pakistan’s capital market growth.
