According to reliable sources, officials are considering a reduction of up to 2.5% in income tax slabs.

A salary increase for government employees is also under serious discussion.

One of the key proposals suggests capping income tax at 2.5% for individuals earning Rs100,000 per month.

The aim is to ease the financial burden on the middle class, which continues to face pressure from rising inflation.

The government is also planning several other economic initiatives.

These include:

• A new loan scheme for small-scale farmers,
• Special incentives to boost the manufacturing sector,
• Reduction in withholding tax on raw materials used in the construction industry

Sources confirmed that virtual negotiations are currently underway between the government’s economic team and the International Monetary Fund (IMF).

The IMF has responded positively to the relief proposals but has stressed that the government must present an alternative revenue plan to offset any losses.

In the coming days, the IMF and government are expected to discuss key budget targets, the fiscal deficit, and projected revenue figures as part of the ongoing budget preparation process.

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