Finance Minister Muhammad Aurangzeb has revealed that Pakistan’s pension allocation has surpassed one trillion rupees—now exceeding the country’s development budget. Speaking at an event organized by the Securities and Exchange Commission of Pakistan (SECP), he announced a proposal to impose a 5% tax on pensions exceeding Rs. 10 million annually.
Tax Reform and Resource Reallocation
Aurangzeb emphasized the need to ensure funding for other critical sectors. “We must provide resources beyond pensions, and this proposal aims to address that,” he said. He highlighted that structural reforms, including in taxation, SOEs, and energy pricing, are underway to stabilize the economy.
Strategic Talks and Economic Stability
The finance minister also spoke of recent talks with U.S. Commerce Secretary and ongoing cooperation between Pakistan and the U.S. on trade and tariffs. He stressed that despite regional tensions, the government is prepared to handle economic impacts, with strategic stockpiles and price monitoring being priorities.
Aurangzeb added that lessons from Sindh and Khyber Pakhtunkhwa on public-private partnerships and pension contributions could help advance reforms nationwide.
