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A representational image of a government employee working in his office. — Geo News/File
#Relief #elusive #salaried #class #crackdown #nonfilers
KARACHI: Pakistan’s 2025-26 budget unveiled Tuesday, offered very little to please the salaried class and added stringent measures for non-filers.
Finance Minister Mohammad Aurangzeb presented Pakistan’s annual budget for the next financial year, which began in July. The budget identifies the government’s commitment to financial stability, which is an important requirement of the International Monetary Fund’s loan program. Aurangzeb announced plans to achieve 4.2 percent economic growth rate, with inflation forecasts for the financial year 26, while also reduction in overall costs, increasing defense spending and tightening tax measures.
The growth year is expected to be 2.7 % this fiscal year, which is less than 3.6 % of the budget target. The budget deficit, which was close to 8 % a few years ago, is now 3.9 % of GDP for fiscal year 26, which is less than 5.6 % revised for this fiscal year.
Pakistan will increase defense spending by 20 %, even as it has reduced federal spending by 7 %, which will reach a total of Rs 17.57 trillion. The budget proposed by Prime Minister Shahbaz Sharif’s government has allocated Rs 2.55 trillion for defense in the financial year 26, which has increased by Rs 2.12 trillion in the previous year.
Former Finance Advisor, Dr. Khaqan Najib, said that at first glance, the budget is done with reasonable and caution. He said that salaried people get some symbolic relief, as well as a slight reduction in super tax and federal excise duty on real estate.
He said that it seems that the budget is the least intended for relief. However, it also wants to restrict the non -filler community from making important shopping or traveling.
Assad Pakistan chief Asad Hameed Khan said that new financial stability and tax measures, including carbon levy and digital enforcement system, have been introduced in the 2025-26 budget.
Khan added, “In the ACCA, we welcome measures to expand the tax base and enhance compliance through technology. These are important construction blocks towards more flexible, equitable and transparent tax environmental systems.”
“We continue to advocate for a permanent, policy -based reforms,” he said.
He added, “Efforts to support export competition, attract investment, and increase predictions, ease to business, and include public confidence by incorporating human capital development.”
The CEO of the Pakistan Business Council, a country, said that despite repeated statements about the importance of exports, there is nothing in the budget to provide immediate assistance.
Malik said, “Exporters will be subject to tax on profit under the government or the minimum tax on the business, whatever is higher. Additionally, they should now have to return export receipts imposed on imports under the export facility scheme in this budget and deducted from GST.”
He added, “The small reduction in super tax will be less consolation for them or for the corporate sector, which will be praised, even the slight decline in corporate tax is 29 percent, which the finance minister has recognized the most in the region.”
He said that in view of the obstacles of a critical economy, the IMF program was unrealistic to stay in the tram lines, provide financial balance and avoid boom and boot cycles, expecting big aid from the budget was unrealistic. Nevertheless, we should be thankful for the small blessings. Salary employees, especially less salary, will benefit. Another important positive is that non -filers have a proposed ban on high -cost transactions or traveling abroad.
He believes that the clear winner of the budget is an unacceptable sector. He said the government was convinced of the issue of reducing taxes to increase the transaction activity. I wish they did the same for businesses who pay a lot of taxes. Also, the real estate investment trusts, which is a formal part of real estate, did not benefit from the budget changes.
“The formal sector will continue to bear the burden of taxes for the future, while it takes time to expand the tax base in people, processes and technology, and the government separates financial policy from strategies with export, industrial and investment policies.”
