Ahead of the upcoming federal budget, Prime Minister Shehbaz Sharif has instructed officials to draft substantial relief measures for Pakistan’s manufacturing and construction sectors, sources revealed to NetMag.
These directives come following consultations with key industrialists and are aimed at lowering production costs, particularly through changes to the tax structure on raw materials. One of the major proposals under review is the elimination of withholding tax on raw materials, which could significantly reduce costs for manufacturers and limit the volume of tax refunds.
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The construction sector is also set to benefit, with similar tax relief measures expected on materials used in building projects. Additionally, the government is considering scrapping withholding tax on property transactions, along with the removal of the federal excise duty on property deals—steps previously under discussion.
To ensure the implementation of these reforms, a special session with the International Monetary Fund (IMF) is planned to secure approval for the tax changes. These efforts reflect the Prime Minister’s commitment to revitalizing key economic sectors while staying aligned with IMF guidelines.
