ISLAMABAD: Federal Finance Minister Muhammad Aurangzeb has announced that the upcoming federal budget for FY2025-26 will include targeted relief measures for the salaried class and a reduction in electricity costs, aiming to ease the financial burden on millions of Pakistanis amid economic challenges.
Speaking to the media following the inauguration of the Made in Gujranwala Exhibition, organized by the Gujranwala Chamber of Commerce and Industry, the finance minister laid out key aspects of the government’s upcoming budget strategy.
Aurangzeb revealed that a comprehensive relief plan for salaried individuals has already been finalized and will be presented to the International Monetary Fund (IMF) as part of Pakistan’s ongoing cooperation with the global lender. This development aligns with calls from civil society and professionals urging the government to raise the income tax exemption threshold to Rs 1.2 million annually.
The minister further stated that the government is working to reduce electricity bills by July or earlier, a move that would provide much-needed relief to households and businesses. This announcement follows Prime Minister Shehbaz Sharif’s recent unveiling of a Rs7.41 per unit cut in electricity tariffs aimed at stimulating the country’s struggling economy.
Regarding Pakistan’s commitments under the IMF program, Aurangzeb confirmed that all targets set by the fund have been met, and the Executive Board is expected to approve a staff-level agreement in May. This approval would unlock the next $1 billion loan tranche, in addition to anticipated climate financing.
The finance minister also highlighted that 98% of budget proposals from public and private sector stakeholders have been received. These suggestions are currently under review, and the government plans to inform contributors about the feasibility of their proposals before the budget is tabled in Parliament.
Aurangzeb assured that the budget will be implemented in its final form starting July 1, without any post-approval alterations to allow for swift and efficient execution.
On the topic of tax reforms, he pointed out improvements in tax collection from traders and emphasized that the success of the trader-friendly schemes should not be gauged solely by revenue numbers. He announced that a simplified tax return form is in development to make compliance easier for the general public. Additionally, he stated that going forward, tax policy will fall under the direct jurisdiction of the Ministry of Finance, streamlining the decision-making process.
This multi-pronged approach signals the government’s intent to balance fiscal discipline with public relief, while continuing economic reforms under international financial oversight.
