Finance Minister Muhammad Aurangzeb has said that Pakistan’s upcoming federal budget, due on June 10, will offer relief to salaried individuals through tax concessions, as the government moves to ease pressure on one of the country’s most heavily taxed segments.
In a recent media briefing, the finance minister acknowledged the strain on salaried workers, noting that their income is taxed even before it reaches them. He said steps are being taken to reduce this burden and simplify the tax filing process for this group.
“This budget is not just about numbers,” Aurangzeb said. “We’re setting a direction for the economy to show where we are and where we’re heading.”
The finance minister pointed to signs of a gradual economic recovery, which he said had gained recognition from international observers. He noted that meetings with investors in Washington and London yielded encouraging feedback, with confidence growing in Pakistan’s macroeconomic stability.
“The world sees Pakistan’s economic outlook in a positive light,” he said.
Aurangzeb also spoke of broader reforms underway, including the digitisation of the Federal Board of Revenue (FBR). The aim, he said, is to limit human involvement in tax matters, making the system more transparent and efficient. Efforts are also ongoing to reform the tax structure and revamp the energy sector.
In a sign of movement on the privatisation front, he said 24 state-owned enterprises have already been transferred to the Privatisation Commission. He added that the government is pushing ahead with a wider shift towards technology and automation in various sectors of the economy.
Addressing the country’s financial challenges, Aurangzeb said there is hope that the burden of debt repayments will ease in the months ahead. He acknowledged climate change as another pressing challenge, saying structural reforms are in progress to better manage its impact.
Further measures to improve debt management are expected in the next fiscal year, and the government is also working on pension reforms and reducing the size of the federal bureaucracy.
Touching on national defence, Aurangzeb said the government remains committed to fully supporting Pakistan’s armed forces. “Defence is a collective responsibility, not just that of the military,” he said.
Commenting on Pakistan’s engagement with the International Monetary Fund (IMF), the finance minister revealed that attempts had been made to disrupt the board meeting where Pakistan’s case was being discussed. Despite these efforts, he said, the discussion went ahead on merit.
“We met all the IMF’s targets. Had we fallen short, the situation would have been much more difficult,” he said.
Talks with the IMF continue, he added, noting that an IMF mission recently concluded its visit and that virtual discussions are ongoing this week.
As for the much-speculated adjustments to civil and military salaries, Aurangzeb said no decision has been made so far.
