The federal government has indicated upcoming financial relief for the salaried class and registered businesses in the next federal budget as economic conditions stabilise. The move comes as authorities project stronger growth and record remittances during the current fiscal year.
The adviser to the federal finance minister said budget preparations now focus on easing pressure on salaried individuals and compliant taxpayers. He added that registered businesses will also receive targeted relief. At the same time, work is underway to rationalise tax rates and reduce energy tariffs to support households and productive sectors.
Growth Outlook Exceeds International Estimates
The adviser expressed confidence that Pakistan’s economic growth will exceed projections made by global financial institutions. He said the economy could grow up to four percent this fiscal year, with growth approaching five percent in the next year. In addition, remittances are expected to surpass forty-one billion dollars, providing strong external support and easing pressure on foreign reserves.
IMF Talks and Structural Reforms Continue
Preparations are ongoing for the next economic review with international lenders. Officials acknowledged that Pakistan has repeatedly approached external institutions due to structural weaknesses. However, they stressed that the current policy framework focuses on caution and sustainability to prevent recurring balance-of-payments crises.
The adviser said around twenty-four state-owned enterprises that burden the national exchequer will be privatised. He noted that this plan aligns with agreed structural benchmarks. Reforms are also underway within government departments, including rightsizing measures and deeper restructuring of the energy sector.
Inflation Falls as Export Prospects Improve
Inflation has declined sharply compared to previous years. Officials noted that inflation has fallen from nearly thirty percent to around five percent. This improvement has helped stabilise prices and restore confidence. With further stability, exports are expected to rise, supporting long-term economic growth and employment.
Provinces Urged to Boost Tax Collection
Federal tax collection reached thirteen trillion rupees last fiscal year. However, provincial contributions remained significantly lower. Officials said provinces collected less than one percent of economic output in taxes, well below required levels. To meet national targets, provincial revenue collection must increase substantially by 2028. Authorities stressed that the challenge lies not in the tax base, but in weak revenue generation.
