Islamabad-(Mudassar Iqbal)-Federal Finance Minister Muhammad Aurangzeb announced that the upcoming budget will provide relief to salaried individuals, and the government is working with the IMF to further reduce electricity bills by July or earlier. He also stated that Pakistan has met its IMF targets, and the IMF Executive Board is expected to approve the Staff-Level Agreement in May, releasing $1 billion and climate financing support.
Aurangzeb has announced that the upcoming federal budget will include relief measures for the salaried class.
He added that the government is working to cut electricity bills by July—or possibly even earlier.
Aurangzeb confirmed that Pakistan has fulfilled all IMF requirements, and the fund’s Executive Board is expected to approve the staff-level agreement in May.
This approval is expected to unlock the next $1 billion loan tranche, along with additional funding for climate-related initiatives.
Regarding the federal budget, the finance minister noted that 98% of proposals from both public and private sector stakeholders have been received.
He assured that feedback will be provided on which recommendations will be incorporated before the budget is formally presented in parliament.
He also emphasized that the budget will be implemented in its final form starting July 1, with no changes after parliamentary approval, ensuring timely execution.
Commenting on tax reforms, Aurangzeb stated that while revenue collection from traders has improved, the newly introduced trader-friendly scheme should not be solely viewed through a revenue lens.
He also revealed that a simplified tax return form is under development to ease compliance for the general public.
The Ministry of Finance will directly oversee tax policy to streamline fiscal management and drive reform.
The minister assured that explanations would also be provided for proposals that could not be implemented. “By July 1, the budget will be enforced in its final form. After that, no changes will be made to ensure timely and effective implementation,” he clarified.
He expressed the hope that the IMF Executive Board will approve the staff-level agreement by May, adding that Pakistan has met all required targets set by the IMF, despite minor delays in some areas. “Those delayed targets have also been fulfilled,” he affirmed.
Regarding taxation, the finance minister said tax collection from traders has improved and urged that the trader-friendly scheme should not be directly linked to tax collection outcomes.
He announced that the Tax Policy Division will begin functioning under the Finance Ministry later this calendar year, aiming for better coordination and policy implementation.
He also said that such a form was being introduced that a taxpayer could himself fill without needing any assistance.
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