Islamabad: Prime Minister Shehbaz Sharif has directed the government to reduce the income tax burden on salaried individuals, according to Minister of State for Revenue, Ali Parvez Malik. Speaking to the media on Thursday, Malik explained that the move is part of broader efforts to ease financial pressures on the middle class while improving the country’s overall economic conditions.
Malik also noted that inflation in Pakistan has declined significantly, falling from over 35 percent to around 7 percent in recent months, providing relief to consumers. Despite the decline in inflation, he pointed out that the federal government has imposed taxes worth Rs. $3.500 billion, but he stressed that combating tax evasion remains crucial to strengthening the country’s revenue base.
The minister admitted that the government had taken some difficult and unpopular decisions in recent months, but stressed that these measures had put Pakistan on the right economic track. He also stated that the current account deficit, which had previously ballooned to $18 billion, was now under control.
Malik stressed that increasing revenue collection is crucial to the country’s financial recovery. He further emphasized that the government is working to ensure that the current IMF program is the last one, with plans to enhance Pakistan’s economic independence.
In addition, the Minister announced that the government has approved measures to strengthen the enforcement capabilities of the Federal Board of Revenue (FBR), including increasing its resources to reduce tax evasion and improve compliance. These steps form part of the government’s broader strategy to stabilize the Pakistani economy and reduce its dependence on foreign financial aid.