Federal Finance Minister Muhammad Aurangzeb has announced that the upcoming federal budget will bring significant relief for salaried individuals and further reductions in electricity tariffs, as part of a broader economic reform agenda.

Speaking on Thursday, Aurangzeb said that a comprehensive relief package for the salaried class has been finalized and will soon be shared with the International Monetary Fund (IMF).

He added that the government is working to cut electricity bills by July—or possibly even earlier.

Aurangzeb confirmed that Pakistan has fulfilled all IMF requirements, and the fund’s Executive Board is expected to approve the staff-level agreement in May.

This approval is expected to unlock the next $1 billion loan tranche, along with additional funding for climate-related initiatives.

Regarding the federal budget, the finance minister noted that 98% of proposals from both public and private sector stakeholders have been received.

He assured that feedback will be provided on which recommendations will be incorporated before the budget is formally presented in parliament.

He also emphasized that the budget will be implemented in its final form starting July 1, with no changes after parliamentary approval, ensuring timely execution.

Commenting on tax reforms, Aurangzeb stated that while revenue collection from traders has improved, the newly introduced trader-friendly scheme should not be solely viewed through a revenue lens.

He also revealed that a simplified tax return form is under development to ease compliance for the general public.

The Ministry of Finance will directly oversee tax policy to streamline fiscal management and drive reform.

Read more

IMF team to arrive in Islamabad for federal budget 2025-26 consultations

IMF recommends increase in motor spirit, high-speed diesel prices

PM Shehbaz Sharif announces up to Rs7.59 cut in electricity prices