Building material wholesale, retail prices to drop in Pakistan from July 2026

ISLAMABAD – The federal government has announced tax relief measures for the housing and construction sector in the budget for fiscal year 2026-27. Finance Minister Muhammad Aurangzeb presented the budget in the National Assembly on Friday, with a total outlay of Rs18,771 billion for the upcoming fiscal year. As part of the proposed measures, the government has reduced sales tax on wholesale building materials from 2.5 percent to 1.25 percent. The same reduction has been proposed for retail building materials, bringing the rate down from 2.5 percent to 1.25 percent. Federal Information Minister Ataullah Tarar welcomed the move, saying it reflects the government’s focus on economic relief and growth. In a post on X, he stated that under Prime Minister Shehbaz Sharif’s leadership, the budget offers a “practical roadmap” for public relief and economic stability. He highlighted measures including tax relief for the salaried class, removal of super tax for exporters, reduced taxes in the housing and construction sector, support for the IT sector, improved opportunities for youth, and abolition of CVT for overseas Pakistanis, calling them key features of the budget.