Prime Minister Shehbaz Sharif Announces Tax Cuts In Islamabad

On February 25, 2026, Prime Minister Shehbaz Sharif announced a significant shift in economic policy, pledging to reduce direct taxes in the upcoming federal budget to stimulate growth and support the business community. He emphasized the need for accountability among businesses, particularly in the sugar, cement, and tobacco sectors, which have been criticized for not remitting indirect taxes. The Prime Minister noted that Pakistan's economic situation has improved, with inflation dropping from around 35% to below 7% and the policy rate reduced to 10.5%. He called for a collaborative effort among all government levels and stakeholders to restore the country's economic standing, aiming for a one trillion dollar economy by 2035 if reforms are fully implemented.