ISLAMABAD: Finance Minister Muhammad Aurangzeb has reaffirmed the government’s commitment to structural reforms and responsible fiscal policy, defending the federal budget for 2025-26 while unveiling significant tariff reductions aimed at stimulating economic growth.
Journalists temporarily walked out of the post-budget press conference in protest over the alleged lack of transparency from government and FBR officials.
Despite the protest, the finance minister addressed key economic issues, including tax enforcement, tariffs, and the unchanged minimum wage.
Tariff Cuts to Boost Industry
Aurangzeb revealed that out of 7,000 existing tariff lines, the government has decided to eliminate additional customs duties on 4,000 items.
He termed this reform vital for improving Pakistan’s global trade competitiveness and supporting exports.
According to him, the cuts are designed to remove inefficiencies and reduce input costs for manufacturers.
Tax Enforcement, No New Burden
The minister clarified that over Rs400 billion in additional tax revenue was generated through better enforcement, not new taxation.
Only Rs312 billion of the total Rs2.2 trillion increase came from new tax measures.
He highlighted the importance of legislative amendments to support long-term enforcement efforts and prevent revenue leakages.
Aurangzeb also shared that the country’s tax-to-GDP ratio currently stands at 10.3%, with a target to increase it to 10.9% in the coming year.
The minister added that Parliament would be consulted to pass necessary laws for effective enforcement.
The government also announced that the minimum wage will remain unchanged at Rs37,000 per month, citing limited fiscal space.
He stressed that future decisions regarding public sector salaries, including those of ministers and parliamentarians, would be approached with balance and fairness.
