Islamabad, April 30, 2025 – The Federal Board of Revenue (FBR) is exploring options to ease the tax burden on salaried individuals, despite a constrained fiscal environment shaped by Pakistan’s commitments to the International Monetary Fund (IMF). FBR Chairman Rashid Mahmood Langrial described the upcoming 2025–26 fiscal budget as “complex” during a recent session of the National Assembly’s Standing Committee on Finance, highlighting the difficulty of balancing tax reductions with IMF-mandated fiscal discipline.
“We are carefully reviewing proposals to provide relief to salaried workers, but any tax cuts will need to align with our broader economic obligations,” Langrial said. The statement reflects growing public pressure to support Pakistan’s salaried class, which has faced rising costs of living amid inflationary challenges.
Finance Minister Muhammad Aurangzeb, joining the meeting virtually, emphasized that the Finance Ministry is prioritizing a robust budget framework for the next fiscal year while developing a sustainable, long-term tax policy. He confirmed that the FBR’s role will now be streamlined to focus exclusively on revenue collection, a move aimed at improving efficiency.
Aurangzeb also shared insights from his recent international engagements, noting that global financial institutions and rating agencies have recognized Pakistan’s improving economic indicators. “In over 70 meetings abroad, stakeholders consistently urged us to stay the course on structural reforms, particularly in taxation, energy, and the privatization of public enterprises,” he said.
The committee meeting also addressed labor concerns, with MNA Agha Rafiullah highlighting that several federal departments, including the Ministry of Overseas Pakistanis, have failed to comply with the mandated minimum wage of Rs37,000 per month. The committee expressed concern and instructed the Finance Ministry to submit a comprehensive report on the issue within 30 days.
As Pakistan navigates its economic recovery, the prospect of tax relief for salaried individuals offers a glimmer of hope, though the government faces the daunting task of balancing domestic priorities with international commitments.
