Pakistan’s export sector could receive significant support in the upcoming Budget 2026-27 as the government considers a tax relief package valued at nearly Rs. 100 billion.
One of the key proposals under discussion is the removal of the 1 percent advance tax charged on export proceeds. Exporters have long argued that this tax affects their cash flow and increases the financial burden on businesses.
The proposed relief is expected to benefit several export-oriented industries, especially the textile sector, which remains Pakistan’s largest source of export earnings.
According to officials, the government is exploring limited measures to support exporters and improve the country’s export performance. In recent years, exporters have contributed around Rs. 200 billion through advance tax payments.
Business leaders have welcomed the proposal but continue to call for broader reforms.
They say high electricity and gas costs, delays in tax refunds, and heavy taxation make it difficult for Pakistani exporters to compete with regional markets.
Industry representatives believe that along with tax relief, long-term policy changes will be necessary to strengthen exports and boost economic growth.