The federal government has hinted at possible tax relief for salaried individuals in the upcoming fiscal year’s budget, offering hope to millions struggling with rising living costs.
According to media reports, targeted relief measures are being prepared for salaried taxpayers and registered businesses, as part of efforts to encourage documentation of the economy and reduce financial pressure on compliant taxpayers.
Targeted Tax Relief Under Preparation
Financial Adviser Khurram Shehzad confirmed that the government is working on a special relief package aimed at:
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Salaried individuals
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Businesses that are part of the documented economy
He stated that the upcoming budget would focus on making tax rates more effective and fair, while also improving overall economic stability.
Energy Prices and Economic Reforms
The adviser added that the government is also working to reduce energy tariffs, which could provide direct relief to households and businesses. Lower energy costs are expected to support industrial growth and improve consumer purchasing power.
GDP Growth and Economic Outlook
Khurram Shehzad shared an optimistic economic outlook, stating that:
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Pakistan’s GDP growth is expected to reach up to 4% in the current fiscal year
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Growth could rise to around 5% next year
He also expressed confidence that remittances may exceed $41 billion, strengthening Pakistan’s external financial position.
IMF Engagement and Fiscal Discipline
Discussing Pakistan’s engagement with the International Monetary Fund (IMF), the adviser said the government is adopting a cautious and sustainable economic approach to avoid repeated balance-of-payments crises.
As part of fiscal reforms, the government plans to privatize 24 loss-making state-owned enterprises, which continue to burden the national exchequer.
Inflation Drops Sharply
On inflation, Khurram Shehzad highlighted a significant improvement:
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Inflation has declined from 25–30% to nearly 5%
The government’s long-term goal, he said, is to increase public income levels, which would help boost exports and support sustainable economic growth.
Tax Collection Challenges Remain
He also revealed that:
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The federal government collected Rs 13 trillion in taxes last year
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Pakistan’s tax-to-GDP ratio stands at 11.3%
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The global benchmark is around 18%
This gap, officials believe, shows the urgent need to expand the tax base rather than overburden existing taxpayers.
