ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb on Monday signalled potential tax relief for the country’s salaried class in the forthcoming federal budget for the fiscal year 2025–26.
Speaking at an event in Islamabad, the Finance Minister said that the budget will be presented on June 10 to ease the financial burden on salaried people.
Aurangzeb went on to say the government is actively working to reduce the tax burden on salaried individuals, adding that tax is deducted from their salary as soon as it is credited into their accounts.
He underscored the need for a strategic direction in the budget, not just a statement of income and expenditure.
“We are taking bold steps in the upcoming budget to show where the economy stands and where it is headed,” he said.
Aurangzeb stated that Pakistan’s economic recovery is increasingly being acknowledged on the international stage, with the pace of progress exceeding expectations.
He emphasized that the digitisation of the Federal Board of Revenue (FBR) is in progress, noting that minimising human involvement will enhance transparency in the system.
He added that reforms are being introduced in the tax system, energy sector, and other areas. “We have already handed over 24 SOEs to the Privatisation Commission,” he said, adding that the economy is moving towards technological transformation.
The minister noted that during recent meetings with investors in Washington and London, Pakistan got a positive response on its economic outlook.
“The world is satisfied with Pakistan’s macroeconomic stability,” he said, reaffirming the government’s commitment to long-term reforms.
He also noted that the government is working to simplify the tax filing process for salaried individuals and is advancing pension reforms.
Aurangzeb expressed optimism that the country’s debt repayment burden will ease over time, while highlighting climate change as a major ongoing challenge—one that is being addressed through a series of planned reforms.
He added that steps to improve the debt management system are expected to be implemented next year. Additionally, efforts to streamline and rightsize federal government departments are currently underway.
Later, speaking to the media, the minister said the government will support Pakistan’s armed forces to the fullest extent possible, adding that national defence is a collective need, not just that of the military.
On the International Monetary Fund (IMF) programme, he added that attempts were made to derail Pakistan’s case by disrupting the board meeting.
“Efforts were made to delay the meeting and exclude Pakistan’s agenda,” he said. However, the case was discussed on merit, and Pakistan fulfilled all IMF targets.
“If we had failed to meet the targets, we would have faced serious difficulty,” he said. He confirmed that implementation of the IMF programme continues, and the IMF mission has already departed after constructive talks. Virtual discussions with the IMF will continue during the current week.
Aurangzeb also clarified that no decision has been made yet regarding adjustments to civil or military salaries.
