ISLAMABAD (PEN) : Finance Minister Muhammad Aurangzeb has asserted that the federal government has provided the “maximum” possible relief to citizens in the budget for the fiscal year 2025–26, citing reduced taxes, targeted reforms, and measures aimed at long-term economic stability.
Budget Focused on Stability and Reform
In an appearance on local channel, the finance minister stated that Pakistan has achieved macroeconomic stability and laid the groundwork for implementing structural reforms. “Structural reforms were easy to talk about; they are difficult to implement. The foundation for these reforms has now been laid,” Aurangzeb noted.
He acknowledged that while steps toward privatization were initiated, they had not yet been successful. “We have repeatedly said this will be the last International Monetary Fund (IMF) programme,” he added.
Key Economic Measures and Tax Policy
Aurangzeb revealed that additional tax revenue between Rs200 billion and Rs250 billion had been generated, with a 47% increase in sales tax collection. However, he emphasized that no new taxes were introduced in merged districts and that a simplified tax return form is being developed for salaried individuals.
The finance minister also announced a transformation initiative at the Federal Board of Revenue (FBR), alongside measures to curb tax evasion. “Lifestyle data of citizens has always been available with NADRA, and a person’s tax contributions can be verified via their CNIC,” he said. He also mentioned that neither he nor Prime Minister Shehbaz Sharif are drawing government salaries.
Inflation, Imports, and Development Priorities
Addressing the inflation outlook, Aurangzeb claimed that the rate remained below the government’s projections. He explained that imports were restricted to stabilize the balance of payments, though a rise in machinery imports indicated a potential upturn in industrial activity.
He also acknowledged declines in wheat and cotton production, but insisted the budget is designed to steer the country “in the right direction.”
Five-Year Economic Plan and Sectoral Growth
Aurangzeb disclosed that he has been tasked with leading the implementation of a five-year economic plan. He highlighted the untapped potential in Pakistan’s minerals and mining industries and expressed optimism about continued growth in the country’s IT exports.
The minister also touched on budget allocations for welfare programs, confirming a proposed 21% increase in funding for the Benazir Income Support Programme (BISP).
