ISLAMABAD: The Pakistan Stock Brokers Association (PSBA) on Sunday welcomed the Federal Budget 2026-27, which reflects a balanced, growth-oriented, and investor-friendly approach towards economic development and Capital Market expansion.
The PSBA is encouraged to note that several key measures announced in the budget are broadly aligned with its recommendations for strengthening Pakistan’s Capital Market and enhancing investor confidence.
A particularly significant and reassuring aspect of the budget is the decision to maintain the existing regime without introducing any adverse changes, in line with our foremost recommendation calling for a consistent, and long-term taxation framework for the stock market. The absence of any new taxes effectively dispels widespread market rumors and concerns regarding additional fiscal burdens on investors at large.
This continuity in tax policy sends a strong positive signal to both domestic and foreign investors, reinforces market stability, and supports greater participation. Predictability in taxation remains one of the most critical factors influencing investment decisions, and the recognition of this principle is highly commendable.
Alongside the direct benefits, it contains several measures that are expected to positively impact various listed companies and sectors. The boost for the textile industry, support for the Information Technology sector through the extension of the Final Tax Regime (FTR) for an additional three years, positive consideration for the pharmaceutical, relief for the construction & energy sectors, infrastructure push, and the reduction in the burden of Super Tax on the corporate sector are all expected to contribute positively to business growth, profitability, and corporate earnings & bottom line.
A stronger corporate sector ultimately translates into a stronger Capital Market, which serves as a vital engine for economic growth, investment mobilization, and wealth creation.
The PSBA would also like to express its sincere appreciation to the Government of Pakistan, the Senate Standing Committee on Finance and Revenue, the Ministry of Finance, the Tax Policy Office, and the Federal Board of Revenue, for their constructive engagement throughout the budget consultation process, by patiently hearing us, carefully considering industry perspectives, and maintaining an open dialogue.
Market participants and investors look forward to continued policy consistency and reform initiatives that encourage greater participation, documentation of the economy, and enhance market depth.
Copyright Business Recorder, 2026
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