The federal government has abolished Super Tax for companies whose export receipts exceed 80 percent of their total turnover under the approved Finance Bill 2026, providing a major boost to Pakistan’s export-oriented industries, particularly the textile sector.
The move goes beyond the original budget proposal, which envisaged only a 2 percentage point reduction in the maximum Super Tax rate from 10 percent to 8 percent. Instead, lawmakers approved a complete exemption for companies meeting the 80 percent export threshold.
The decision is expected to particularly benefit large textile exporters such as Interloop Limited and Gul Ahmed Textile Mills, which derive 94 percent and 91 percent of their revenues from exports, respectively. Other companies expected to qualify include Feroze1888 Mills, whose exports account for around 96 percent of total revenue, according to JS Global.
According to estimates by JS Global, the exemption could increase Interloop’s FY27 earnings per share by 17 percent to Rs. 15.64, while its target price could rise by 27 percent to Rs. 137. The brokerage maintained a “Buy” recommendation on the stock.
Super Tax was introduced in 2015 as a temporary levy to support rehabilitation efforts following military operations against terrorism.
Over time, it evolved into a recurring tax burden on large corporations, drawing criticism from exporters who argued that it reduced competitiveness at a time when businesses were already grappling with high energy costs, elevated borrowing rates, and delayed tax refunds.
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