Pakistan’s Federal Finance Minister Muhammad Aurangzeb held a press conference on Thursday to announce significant relief measures in the upcoming 2025-26 budget. The budget will include targeted benefits for salaried individuals and a reduction in electricity costs, with implementation planned for July.
The finance ministry has finalized a comprehensive relief package for salaried taxpayers, which is being presented to the International Monetary Fund (IMF) as part of ongoing negotiations. Aurangzeb confirmed that Pakistan had met all IMF benchmarks, and the Executive Board expected to approve the staff-level agreement in May. This approval will trigger the release of a $1 billion loan instalment and potentially additional climate financing.
On energy reforms, the minister stated the government is working to lower electricity tariffs, potentially before July. The budget preparation process has incorporated 98% of proposals from both public and private sector stakeholders. Aurangzeb emphasized the finalized budget will take effect on July 1 without post-approval modifications to ensure timely implementation.
Tax administration reforms include developing simplified tax return forms for general taxpayers and transferring tax policy oversight to the Finance Ministry. While acknowledging improved tax collection from traders, the minister stressed that trader-friendly policies shouldn’t be exclusively tied to revenue targets.
