ISLAMABAD: Federal Finance Minister Muhammad Aurangzeb has signaled potential tax relief for the salaried class in the upcoming federal budget, which is scheduled to be presented on June 10. The move aims to ease the financial burden on individuals whose income is taxed at the source.
Speaking at an event in Islamabad on Monday, Aurangzeb said the government is working on measures to lighten the tax load on salaried individuals and to make the tax system simpler and more transparent.
“We are not just presenting a budget—we are setting a strategic direction for the economy,” the minister stated, adding that bold decisions are being made to reflect both the current state of the economy and its future trajectory.
Economic Outlook and Reforms
Aurangzeb highlighted the growing international confidence in Pakistan’s economic recovery, noting that investors in Washington and London had responded positively during recent meetings. He stressed that digitisation of the Federal Board of Revenue (FBR) is underway, aimed at reducing human interaction and improving transparency in the tax system.
The finance minister also pointed to ongoing reforms across the tax system, energy sector, and state-owned enterprises (SOEs). He confirmed that 24 SOEs have already been handed over to the Privatisation Commission, with the broader goal of technological and structural transformation of the economy.
He added that pension reforms are also in the pipeline and that rightsizing of federal departments is actively being pursued.
IMF Programme and Budget Priorities
Aurangzeb reassured that Pakistan has met all targets set by the International Monetary Fund (IMF) and confirmed that the IMF board considered Pakistan’s case on merit despite attempts to disrupt or delay the process.
“Had we failed to meet those targets, we would have faced serious setbacks,” he told reporters. “The IMF mission has concluded constructive discussions, and virtual talks will continue this week.”
He said that while support for the armed forces will remain a priority, no final decision has yet been made regarding civil or military salary adjustments in the upcoming budget.
Aurangzeb also highlighted efforts to simplify tax filing for salaried individuals and expressed optimism about reducing Pakistan’s debt burden over time. He acknowledged climate change as a significant challenge and emphasized that reforms in debt management and climate resilience are part of the government’s broader agenda.
