Government Targets Economic Growth, Tax Reforms In Budget: Aurangzeb

ISLAMABAD, (UrduPoint / Pakistan Point News - 14th Jun, 2025) Finance Minister Muhammad Aurangzeb on Friday said that the Federal budget for fiscal year 2025–26, emphasized a strong focus on economic stability, revenue generation, and compliance with the International Monetary Fund (IMF) program.

Talking to a private news channel, he said that the government was building on the progress achieved over the past year, and aiming to continue macroeconomic reforms while fostering inclusive growth.

He said Pakistan had entered a phase of economic recovery, noting that inflation had dropped from 28.5% in May 2023 to around 11.8% in May 2024.

“The policy rate has now started to decline, and for the first time in years, we have recorded both a current account surplus and a Primary fiscal surplus,” he stated.

The finance minister said the government had adopted a three-pronged strategy to improve revenues which is enforcement, administrative measures, and new taxation.

He stressed that a large portion of the new taxes would be collected via improved compliance and documentation.

“We are committed to curbing leakages and broadening the tax base,” he said, adding that digitalization and track-and-trace systems in key sectors like sugar, cement, fertilizer, and tobacco would be expanded.

He said the government’s “Tajir Dost” scheme aimed at registering retailers was a major step toward formalizing the economy, and would be further strengthened with incentives and enforcement.

He noted that the use of technology and real-time reporting would be key in curbing tax evasion.

He also acknowledged the burden on salaried individuals and assured that relief measures had been introduced.

“We have kept the salaried class in mind while designing tax slabs. At the same time, we are ensuring that untaxed sectors start contributing,” he said.

The finance minister said that the budget reflected a balanced approach between growth and fiscal responsibility, and reaffirmed the government’s commitment to structural reforms in partnership with the IMF.

“This budget is not just about numbers. It’s about putting the country on a stable and sustainable path,” he said.