Finance Minister Muhammad Aurangzeb has announced that the government aims to ease the financial burden on salaried workers in the upcoming 2025-26 budget.
This decision comes after the implementation of a 35% income tax rate on salaried employees, who have limited ways to avoid taxation since their taxes are deducted directly from their salaries.
Speaking at an event in Lahore, Aurangzeb stressed the importance of the private sector in strengthening Pakistan’s economy. He noted that foreign exchange reserves have been gradually increasing, which is a positive sign for economic stability.
The minister also reaffirmed the government’s support for the construction industry, recognizing its role in economic development. However, he made it clear that the government would not encourage speculative real estate activities, such as trading plots and files. He described these practices as unsustainable and not beneficial for long-term economic growth.
By focusing on reducing the tax burden on salaried individuals, promoting private sector growth, and ensuring responsible real estate development, the government aims to create a more balanced and stable economy.
