Pakistan’s Finance Minister, Muhammad Aurangzeb, has acknowledged that the country’s salaried class is bearing a heavy tax burden. Speaking at the “Dialogue on the Economy” event, hosted by the Pakistan Business Council (PBC), he hinted at possible changes to the tax slabs to provide relief.
The minister admitted that salaried employees are paying a disproportionately high amount in taxes. However, he clarified that while there is a need to reconsider the tax structure, he cannot make any official commitment at this stage. He also mentioned that the government aims to simplify the tax filing process for salaried individuals, making it easier and more efficient.
During his speech, the finance minister highlighted positive economic indicators, stating that the country’s financial situation is gradually improving. He pointed out that the KIBOR (Karachi Interbank Offered Rate) has dropped to approximately 11%, which could boost business confidence by making borrowing more affordable.
Additionally, he referred to the central bank’s projection of reaching $13 billion in foreign exchange reserves by the end of the current fiscal year. This increase would provide around three months of import cover, a crucial milestone for Pakistan’s economy. If the economic progress continues, the minister believes it could lead to an improved credit rating, potentially reaching a single B category.
These developments signal a hopeful future for Pakistan’s economy, with potential tax relief for the salaried class and a more stable financial environment.
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