- Budget 2025-26 preparation afoot in consultation with traders: Aurangzeb
LAHORE: Finance Minister Muhammad Aurangzeb reaffirmed the federal government’s commitment to reduce the burden on the salaried class, promising a plan in the upcoming budget in this regard.
“The manufacturing sector and salaried class have borne the brunt of taxation, and now all sectors must contribute their fair share to the economy,” elaborated Finance Minister Aurangzeb while talking to the media after an event here in Lahore.
Aurangzeb’s statement comes as Pakistan looks to curb the criticism it has faced since last year over unpopular reforms, including record-high taxes.
In 2024, the salaried class emerged as the third-largest contributor to income tax collection in the outgoing fiscal year, following closely behind banks and petroleum products, and still surpassing the country’s affluent textile exporters.
The salaried class contributed Rs367.8 billion to income tax collection in FY24, a 39.42 per cent rise, from Rs263.8bn in FY23.
The Finance Minister highlighted positive economic indicators, including a rise in remittance senders to 35 million and an increase in Roshan Digital Account inflows.
Aurangzeb emphasised the private sector’s vital role in driving the country’s economic progress, stating that foreign exchange reserves are steadily growing.
The finance minister reiterated that sustained economic growth was a priority, and the government was committed to ensuring policy continuity to support the private sector. “The real progress will come from the private sector, and we must provide them with a conducive policy framework,” he noted.
Mr Aurangzeb also dismissed concerns over overseas Pakistanis’ sentiments, saying that during his recent visits to Saudi Arabia, Dubai, and Washington, he observed no discontent among expatriates. “We are grateful for their contributions, and we expect remittances to reach $35 billion this year,” he said.
He also pointed out the steady increase in the Roshan Digital Account, a key initiative to attract foreign investments from Pakistanis abroad.
He further stated that reforms in the Federal Board of Revenue (FBR) were in progress, aimed at making the tax system more efficient and acceptable to the public.
In light of his recent state visits to Saudi Arabia, the UAE and the US, the minister said that there was “no displeasure overseas” in the diaspora regarding Pakistan’s trajectory.
Aurangzeb represented Pakistan at the two-day Emerging Markets Conference-2025 in Saudi Arabia, which is attended by finance ministers, central bank governors, policymakers and economic experts from around the world.
The high-profile gathering included IMF Managing Director Kristalina Georgieva, Bahrain’s Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa and Saudi Arabia’s Vice Minister of Finance Abdulmuhsen Alkhalaf, a news release said.
Mr Aurangzeb’s participation underscored Pakistan’s proactive engagement in global economic policymaking and its commitment to fostering regional and international partnerships.
Commenting on sports, the finance minister expressed his full support for the national cricket team, commending their performance. “The team played with determination, and we extend our best wishes to them,” he stated.
