Web Desk: Govt plans to introduce a “people-friendly” federal budget for fiscal year 2026-27 with targeted relief on electricity and petroleum products, a junior minister said, as authorities seek to ease pressure on households and revive economic activity.
Minister of State for National Heritage and Culture Huzaifa Rehman told in an interview that the government was finalizing measures aimed at directly benefiting ordinary citizens despite lingering economic challenges.
“The prime minister has directed the government to ensure maximum relief for the public,” Rehman said, adding that lower electricity costs, relief on fuel prices and support for essential goods remained key priorities in the upcoming budget.
Pakistan’s coalition government, led by Prime Minister Shehbaz Sharif, has faced mounting public pressure over inflation, high utility costs and slowing business activity since taking office during a severe economic crisis in 2022.
Rehman said the government inherited critically low foreign exchange reserves when it assumed power in June 2022. However, he added that macroeconomic indicators had since improved.
Still, he said regional tensions and global conflict had limited the government’s ability to reduce petroleum prices further.
“Had the geopolitical situation remained stable, the government could have provided greater relief in petroleum prices,” he said.
According to Rehman, Prime Minister Sharif instructed the finance ministry to prioritize relief measures involving food items, medicines and affordable electricity in the new fiscal plan.
The minister also signaled a major relief package for Pakistan’s struggling property sector, saying investor confidence had weakened following complaints from businesses and developers.
In addition, the government is considering subsidies or tax relief on agricultural pesticides to support farmers and strengthen the agriculture sector, he said.
Meanwhile, industrial incentives are also under discussion as Islamabad attempts to boost exports, reduce reliance on imports and restart idle production capacity.
Rehman said the government aimed to provide cheaper electricity to industries in order to increase production, create jobs and strengthen the economy.
The minister added that creating employment opportunities for young people would remain one of the government’s central economic priorities during the remainder of its term.
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