Finance Minister Muhammad Aurangzeb has said that no final decision has been made yet on salary increases for civil and military employees in the upcoming budget. However, the government is actively working on measures to reduce the tax burden on the salaried class.
Speaking at an event in Islamabad, Aurangzeb stated, “While no concrete announcement has been made regarding salary revisions, the government will support the armed forces to the best of its capacity—it is a national necessity, not just a military one.”
He highlighted that Pakistan successfully met all targets under the IMF programme, despite attempts to derail the process. “Our case was discussed on merit,” he said, adding that if the country had missed its goals, the situation could have worsened.
The minister expressed satisfaction over global recognition of Pakistan’s improving economic trajectory. He said foreign investors in London and Washington responded positively, indicating confidence in Pakistan’s macroeconomic stability. He added that long-term reforms are being prioritized, especially in the tax and energy sectors.
Aurangzeb also announced tax relief efforts for the salaried class, mentioning the challenges faced due to automatic deductions. He noted ongoing digitization of the Federal Board of Revenue (FBR), aiming to reduce human interference and increase transparency. Additionally, the government is working on pension reforms and modernizing debt management systems.
The finance minister acknowledged that Pakistan’s economic size is nearing $400 billion, calling it a promising sign. He also stressed the need for climate-related reforms to tackle the growing threat of environmental changes.