Finance minister shares update on civil, military salaries ahead of budget

ISLAMABAD – Federal Finance Minister Muhammad Aurangzeb has stated that no decision has yet been made regarding an increase in civil and military salaries, while efforts are underway to provide relief to the salaried class in the upcoming budget.

Speaking at a ceremony in Islamabad, the finance minister, however, said Pakistan will support its armed forces as much as possible. “This is not just a need of the military, but a national need of Pakistan,” he added.

Muhammad Aurangzeb said that attempts were made to derail Pakistan’s loan program at the IMF board, with efforts to prevent the meeting and block Pakistan’s agenda from being discussed. However, Pakistan’s case was discussed on merit, and the country met all IMF targets. “If Pakistan had failed to meet these targets, it would have faced serious challenges.”

The finance minister said that the world is acknowledging Pakistan’s economic improvement and is surprised by the pace of this progress.

“The world is satisfied with Pakistan’s macroeconomic stability, while the government is committed to long-term reforms.”

Muhammad Aurangzeb said reforms are being introduced in the tax system, energy, and other sectors. “We are moving towards a technology transformation in the economy, and the digitization process in the FBR is ongoing, which will reduce human intervention and increase transparency.”

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The finance minister further stated that steps are being taken to reduce taxes on the salaried class. “The government intends to simplify the tax payment process for the salaried class. Currently, taxes are deducted as soon as salaries are deposited into accounts. We are working to provide relief to this group in the upcoming budget and are also working on pension reforms.”

He said that the burden of debt payments is expected to decrease, and steps will be taken next year to improve the debt management system. “Becoming a $400 billion economy is good progress for Pakistan,” he concluded.