Malik Mohabat Awan terms fiscal budget 2026-27 economic and energy reforms “historic relief package for people”

ABBOTTABAD, (APP - UrduPoint / Pakistan Point News - 12th Jun, 2026) President PML-N District Abbottabad Malik Mohabat Awan has said that fiscal budget 2026-27 economic and energy reforms represent a “historic relief package” aimed at easing the burden on salaried individuals, small traders, and the business community while ensuring long-term economic stability.

In an interview, Malik Mohabat Awan welcomed the reduction in income tax rates across all salary slabs, noting that the exemption limit has been raised and the minimum wage increased by 10 percent, which he described as a positive step toward improving purchasing power of the common man.

He particularly appreciated the introduction of the Fixed Tax Scheme under for small retailers with annual sales up to Rs. 10 million, calling it a “pro-business and documentation-friendly initiative” as it offers a simplified 1 percent tax regime with no audit requirement and QR code-based certification.

He also lauded the reduction in digital transaction withholding tax from 5 percent to 0.5 percent and termed it a major facilitation for digital payments and financial inclusion. Referring to the construction sector relief, he said the reduction in withholding taxes on purchases and sales would revive economic activity and generate employment opportunities.

On the IT sector, Malik Mohabat Awan praised the extension of export concessions until June 2029 under a 0.

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25 percent final tax regime, saying it would strengthen Pakistan’s IT exports and attract investment. He also highlighted the establishment of a National Faceless Centre for automated and bias-free tax assessments as a step toward transparency and efficiency in the tax system.

Turning to energy reforms, he said the launch of the Competitive Trading Bilateral Contract Market (CTBCBM) marks a major structural shift in the power sector, adding that efforts to reduce circular debt and achieve net-zero accumulation would stabilize the energy economy.

He further noted significant progress in oil and gas exploration, including the issuance of 24 offshore licenses and 17 new discoveries, adding 229 mmcfd gas and 13,000 barrels of oil.

He also mentioned LNG sale and purchase agreements for 1.2 billion cubic feet per day as a move toward ensuring energy security.

Malik Mohabat Awan added that shifting the subsidy mechanism toward direct BISP payments by 2027 would ensure greater transparency and targeted support for deserving families.

He said these reforms collectively reflect a “comprehensive roadmap for economic stability, industrial growth, and energy security” and urged all stakeholders to support their implementation.