ISLAMABAD: The government of Pakistan is likely to provide relief to the salaried class and business people in the upcoming budget.
According to details, the federal government is planning to provide relief to the salaried class and registered businesses in the upcoming budget.
Advisor to the Prime Minister on Finance Khurram Shahzad said in a conversation that targeted measures are being prepared for salaried people and businesses involved in the formal economy. The government is also working on reducing energy prices and better managing tax rates so that direct relief can be provided to taxpayers.
The Finance Minister said that Pakistan’s GDP could grow by 4 percent in the current fiscal year, while this rate is expected to reach about 5 percent next year. Remittances are expected to exceed $41 billion to strengthen the country’s external accounts.
Khurram Shahzad also mentioned preparations for the upcoming economic review with the IMF and said that this time the government is following a cautious and sustainable economic policy so that repeated balance of payments crises can be avoided. He said that 24 government agencies that are increasing the financial burden will be privatized.
Referring to the reduction in inflation and pressure on the public, he said that inflation has come down from 25–30 percent to about 5 percent, and the government aims to increase the income of citizens, which will promote exports and long-term economic growth.
Khurram Shahzad also highlighted the weaknesses in tax collections, saying that the federation collected Rs 1.3 trillion in taxes last year, which made the federal tax-to-GDP ratio 11.3 percent, while the global standard is about 18 percent.
He said that provincial taxes are low overall and need to be increased threefold by 2028.
