Good news for credit and debit card users

ISLAMABAD: The government has provided relief to credit and debit card users. Finance Minister Muhammad Aurangzeb said that it is proposed to reduce the tax rate on every transaction on the use of credit or debit cards abroad from 5 percent to 0.5 percent.

Earlier, Finance Minister Muhammad Aurangzeb, while addressing the budget speech, said that it is an honor for me to present the budget before this house, I thank the parliamentary leaders of all political parties, it is an honor for me to present the third budget, I am grateful to the Prime Minister and Bilawal Bhutto for their cooperation in preparing the budget.

Muhammad Aurangzeb said that today the whole world recognizes Pakistan’s defense power, Pakistani forces gave a befitting reply to Indian aggression, the success of Banyan Marsus is a bright chapter in our history, we are proud of the great success in Banyan Marsus, strong defense can contribute to economic strength, the strategic agreement between Pakistan and Saudi Arabia is very important.
He said that our armed forces gave a befitting reply to the enemy, the defense agreement with Saudi Arabia has given a new dimension to bilateral relations, the defense industry has become a source of earning valuable foreign exchange, Pakistan played an important role as a mediator between the United States and Iran, relations with China are an important pillar of our foreign policy, Pak-China friendship is not limited to governments but is a relationship linked to the destiny of nations.

He said that due to the Iran-US war, there was a huge increase in petroleum products, the increase in petroleum products put an unexpected burden on the budget of every household, if the government had transferred the entire burden of prices to the people, the prices would have been higher, the government gave a relief of Rs 128 billion to the people on petroleum prices, our economic growth rate has reached 3.7 percent.

Finance Minister Muhammad Aurangzeb announced relief for the salaried class and said that the rate for those earning Rs 22 to 32 lakh annually has been reduced from 23 to 20 percent, and the tax for those earning Rs 32 to 41 lakh annually has been reduced from 30 to 25 percent.

Muhammad Aurangzeb said that Pakistan is moving towards economic stability, the budget 2026-27 is a budget for development and public relief, the government has brought the economy out of the crisis and put it on the path of stability, Pakistan’s global reputation has improved, the confidence of international financial institutions has been restored, positive results of economic reforms are emerging, foreign exchange reserves and exchange rate have been stabilized.

In his budget speech, the Finance Minister said that significant reduction in inflation and financial discipline are the government’s major achievements, improvement in the production of the industrial sector and large industries has been recorded, a new strategy is being introduced to promote exports and economic activities, and the improvement in Pakistan’s credit rating is an expression of global confidence.

He said that the privatization program is being accelerated, reforms of national institutions are underway, progress is being made on the privatization of important government institutions including PIA, circular debt is being reduced through reforms in the energy sector, steps are being taken to improve the performance of electricity distribution companies, modern technology, artificial intelligence and digital monitoring have been introduced in the tax system, an AI-based system is being implemented to prevent tax evasion and ensure transparency.

He said that an easy and transparent tax system for the business community is the government’s priority, special attention is being paid to the promotion of a cashless economy under the Digital Pakistan Vision, the number of digital payments and banking users has increased significantly, skills, business and employment opportunities are being increased for the youth, millions of youth are benefiting under the Prime Minister’s Youth Program, new opportunities for easy loans and agricultural financing are being provided for the youth.

The Finance Minister said that the Pakistan Accelerated Vehicle Electrification Program is being launched to promote electric vehicles, a special financing facility is being introduced for agricultural storage facilities and food security, the trade and tariff system is being made compatible with global requirements, and comprehensive measures are being taken to increase exports and promote investment.