ISLAMABAD: The government is actively considering a reduction in the federal excise duty (FED) on aerated beverages in the upcoming 2025-26 budget to attract greater foreign investment in the sector.

Sources informed Business Recorder on Monday that budget planners are finalizing proposals aimed at providing tax relief for the industry.

Foreign investors, including those from Turkey, have expressed a willingness to increase foreign direct investment in Pakistan’s beverage sector if such fiscal incentives are introduced.

Since 2018, major international players—particularly Turkish and Korean franchise investors—have already invested over USD 2 billion in the country.

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