Govt prepares relief package for salaried class & businesses in next budget

ISLAMABAD: According to the federal government, preparations are being made to provide relief to the salaried class and registered business people in the budget for the next fiscal year.

According to media reports, government sources say that several measures will be included in the budget to provide convenience to taxpayers.

Advisor on Finance Khurram Shahzad said that a targeted relief package is being prepared for salaried people and businesses that are part of the documented economy. He said that the government is also working on reducing energy prices and making tax rates effective so that the people can benefit directly.

According to Khurram Shahzad, Pakistan’s gross domestic product (GDP) is expected to increase by 4 percent in the current fiscal year, while this rate could reach about 5 percent next year.

He said that remittances are expected to exceed $41 billion for external financial stability.

The Finance Advisor, while mentioning the preparations for the upcoming economic review with the IMF, said that the government is adopting a cautious and sustainable economic policy this time to avoid recurring balance of payments crises.

He further said that 24 government institutions that are a burden on the national exchequer will be privatized.

Talking about inflation, Khurram Shahzad said that the inflation rate has come down from 25 to 30 percent to about 5 percent. The government’s goal is to increase the income of the people, which will promote exports and long-term economic growth.

He also shed light on tax collections and said that last year the federation collected Rs 1.3 trillion in taxes, which made the tax-to-GDP ratio 11.3 percent, while according to global standards, this rate should be about 18 percent.