Finance Minister Muhammad Aurangzeb on Monday said the task of formulating the upcoming federal budget has been reassigned to the Finance Division, delinking the Federal Board of Revenue (FBR) from policymaking.
“The Tax Policy Office is now moving to the Finance Division. The FBR has nothing to do with the policy,” he told a conference, “Unlocking Capital Market Potential for Banks.” He added that the Finance and Tax Policy Office, not the FBR, would devise the federal budget for FY2026-27.
The Tax Policy Office was established earlier this year as part of the government’s economic reform agenda. Its mandate is developing tax policies and proposals using data modelling, as well as revenue and economic forecasting.
Aurangzeb said the government aims to create an enabling environment and provide a supportive ecosystem, including ensuring policy continuity. As part of this, he said, the government is devising an industrial policy aimed at accelerating industrial growth.
“This is an important element of how we are going to move from stability to sustainable growth, because these underlying pillars are going to be quite critical,” he said.
During his discussion, the minister acknowledged the need to reduce customs and regulatory duties to facilitate export-oriented businesses. “I just want to be very clear that the IMF [International Monetary Fund] has nothing to do with it. Tariff reform is very much a home-grown agenda of the government and this administration to make our industry more competitive as we go forward,” he added.
Aurangzeb further proposed forming a Capital Market Development Council to mobilize funds for development through domestic capital markets such as the Pakistan Stock Exchange (PSX). He noted the PSX had recently surpassed the 140,000-point mark for the first time, maintaining this reflected strong market confidence and consistent returns.