Islamabad, May 26, 2025: Federal Finance Minister Muhammad Aurangzeb has indicated that the upcoming federal budget, scheduled to be presented on June 10, will include tax relief measures for the salaried class. Speaking at an event in Islamabad on Monday, Aurangzeb acknowledged the disproportionate tax burden faced by salaried individuals and promised targeted relief.
“The government is actively working to reduce the tax burden on salaried persons, whose income is taxed the moment it is credited to their accounts,” the minister stated.
He stressed the need for a clear strategic direction in the budget, moving beyond a mere statement of income and expenditure. “We are taking bold steps in this budget to show where the economy stands — and where it is headed,” Aurangzeb said.
Highlighting the progress of economic reforms, the finance minister noted that Pakistan’s recovery is gaining international attention. “The pace of improvement has surprised many observers,” he said, pointing to ongoing digitisation efforts within the Federal Board of Revenue (FBR) aimed at reducing human intervention and enhancing transparency.
Aurangzeb also announced that structural reforms are underway in the tax system, energy sector, and other key areas. He confirmed that 24 state-owned enterprises (SOEs) have already been handed over to the Privatisation Commission as part of a broader economic transformation agenda.
Sharing insights from recent meetings with global investors in Washington and London, he said Pakistan received encouraging feedback on its macroeconomic outlook. “The world is satisfied with Pakistan’s macroeconomic stability,” he asserted, reaffirming the government’s commitment to long-term reforms.
Aurangzeb added that efforts are being made to simplify the tax filing process for salaried individuals and push forward with pension and institutional reforms. He also expressed optimism about easing Pakistan’s debt burden and emphasised that climate resilience remains a national priority.
On administrative efficiency, the finance minister confirmed that rightsizing of federal departments is underway to improve performance and reduce redundancy.
Addressing the media later, Aurangzeb affirmed the government’s full support for Pakistan’s armed forces. “National defence is a collective responsibility — not just that of the military,” he said.
Commenting on Pakistan’s programme with the International Monetary Fund (IMF), the minister revealed that attempts were made to disrupt the recent IMF board meeting. “Efforts were made to delay the meeting and remove Pakistan’s agenda, but our case was heard on merit, and all targets were met,” he said.
He confirmed that the IMF programme remains on track, with the mission having completed its visit and virtual talks continuing this week.
Finally, Aurangzeb clarified that no decision has yet been taken regarding adjustments to civil or military salaries in the upcoming budget.
