Islamabad: Federal Government signalled imminent tax relief for salaried workers, citing easing inflation, stronger revenues and renewed confidence from global lenders as it pushes ahead with economic reforms.
Speaking in an interview with private broadcaster Samaa News, Minister of State for Finance Bilal Azhar Kiyani said the government recognizes that salaried individuals shoulder a disproportionate tax burden and is working to provide relief “within their means.”
Relief for salaried class
Kiyani said the government intends to ease pressure on salaried taxpayers rather than impose further levies on those already in the tax net.
“The salaried class is overburdened,” he said. “We will try to provide relief while keeping fiscal realities in mind.”
However, he ruled out the need for a mini-budget or emergency tax measures, signaling continuity in the current fiscal framework.
IMF support and market confidence
Meanwhile, Kiyani described the release of an International Monetary Fund loan tranche as a vote of confidence in Pakistan’s economy.
He added that recent assessments by global credit rating agencies have been broadly positive, reflecting improved macroeconomic indicators and policy discipline.
Inflation cools, purchasing power improves
At the same time, the minister pointed to a sharp decline in inflation, saying average inflation has fallen from about 24% to nearly 5%.
“This creates room to improve people’s purchasing power,” he said, adding that Prime Minister Shehbaz Sharif is advancing economic decisions in consultation with the private sector.
Kiyani said the government has restored a degree of economic stability and fiscal discipline over the past 18 months.
Revenue growth and tax enforcement
Turning to revenues, Kiyani said Federal Board of Revenue tax collections rose by 26% last year, helped by enforcement measures and sector-specific actions.
He said the government has begun targeting elite groups, including imposing tighter controls on the tobacco sector. In addition, customs reforms have introduced a faceless system to curb collusion and corruption.
“Our policy is clear,” he said. “We will not burden existing taxpayers further. Instead, we will go after tax evaders.”
Reserves, reforms and risks
Kiyani said Pakistan’s foreign exchange reserves have been stabilized and that ongoing economic reforms aim to deliver tangible benefits to the public.
He warned that without stabilization measures, Pakistan could have faced risks similar to those seen in Sri Lanka during its economic crisis.
Looking ahead, he said privatization of state-owned enterprises and tariff reforms remain unavoidable steps to ensure long-term economic sustainability.
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