ISLAMABAD: Federal Finance Minister Muhammad Aurangzeb on Thursday assured that the upcoming federal budget will bring significant relief for the salaried class and further reductions in electricity bills, as the government aims to ease the economic burden on the public.
Speaking to the media, Aurangzeb revealed that a comprehensive relief plan targeting salaried individuals has been finalized. This plan will be shared with the International Monetary Fund (IMF) as part of Pakistan’s ongoing economic engagement. He added that the government is working to reduce electricity tariffs by July — or potentially even earlier — to help citizens cope with rising living costs.
Highlighting Pakistan’s progress under the IMF program, the finance minister confirmed that all targets have been met. He expressed confidence that the IMF Executive Board will approve the staff-level agreement in May. This would pave the way for the release of a $1 billion loan tranche, along with additional funding under climate finance mechanisms.
Aurangzeb also noted that 98% of budget proposals from public and private sector stakeholders have already been received. The government is now in the process of evaluating these suggestions, and feedback will be provided to stakeholders ahead of the budget’s presentation in parliament. He emphasized that the finalized budget will take effect from July 1, with no changes after parliamentary approval, to ensure smooth and timely implementation.
On tax reforms, the finance minister said that while tax collection from traders has seen improvement, the recently introduced trader-friendly scheme should not be solely evaluated based on revenue performance. He underlined that tax reforms aim to broaden the tax base while making compliance easier for all segments.
Aurangzeb also announced that a simplified tax return form is currently in development, aimed at making the filing process more accessible for the general public. In a significant policy shift, tax policymaking will now be overseen directly by the Ministry of Finance, rather than the Federal Board of Revenue (FBR), to ensure better alignment with fiscal priorities.
These developments signal the government’s intention to strike a balance between meeting international commitments and addressing domestic economic challenges, especially for the middle class struggling with inflation and high utility costs.
