Federal Budget
Islamabad – April 11, 2025: Federal Finance Minister Muhammad Aurangzeb has announced that the upcoming federal budget will deliver substantial relief for the salaried class and introduce further reductions in electricity tariffs, as part of the government’s broader economic reform strategy.
Addressing the media on Thursday, the finance minister shared that a well-structured relief package specifically targeting salaried individuals has been finalized. This package, he noted, will soon be presented to the International Monetary Fund (IMF) as part of the ongoing financial cooperation between Pakistan and the global lender.
Highlighting the government’s commitment to easing the financial burden on citizens, Aurangzeb stated that measures are being taken to lower electricity bills by July—or potentially even earlier.
These reductions are aimed at providing immediate relief to households and businesses struggling with rising energy costs.
Aurangzeb confirmed that Pakistan has met all the preconditions set by the IMF under the current loan program. He expressed optimism that the IMF Executive Board will approve the pending staff-level agreement in May, which would lead to the release of the next $1 billion tranche.
In addition, this approval is expected to unlock further funding for climate-related projects, supporting Pakistan’s sustainable development goals.
In preparation for the federal budget, the finance ministry has already received 98% of proposals from stakeholders across the public and private sectors.
Aurangzeb assured that transparent feedback will be provided on which suggestions are accepted before the budget is officially presented in parliament.
He further clarified that once the budget is passed by parliament, it will be implemented in its final form starting July 1, with no amendments afterward, ensuring timely and effective execution.
On the topic of tax reforms, Aurangzeb emphasized that although revenue collection from traders has improved, the new trader-friendly tax scheme should not be evaluated solely from a revenue standpoint. Its primary aim is to promote ease of compliance and broaden the tax base.
To support this initiative, the government is also developing a simplified tax return form to make the process more accessible to the general public. Additionally, the Ministry of Finance will assume direct control over tax policy to ensure better fiscal discipline and reform implementation.
These announcements come as part of a comprehensive push by the government to stabilize the economy, foster growth, and deliver meaningful relief to Pakistan’s working and middle classes.
