Federal Finance Minister Muhammad Aurangzeb addresses a press conference after the budget, stating that the government was trying to give as much relief as possible to the paid class.
When he spoke in Islamabad, Aurangzeb said out of a total of 7,000 customs lines, 4,000 have been brought down to zero. He added that these customs reforms are expected to increase the country’s exports.
Previously, the Minister of Finance arrived at the briefing accompanied by the Financial Secretary and the chairman of the Federal Board of Revenue (FBR). Journalists, however, booted the press conference in protest of the absence of a technical orientation of the budget.
Journalists noted that in the last 20 years it has been standard practice to provide a technical orientation to journalists after the budget. This year, they said, the government broke this tradition.
Later, the Minister of Finance instructed relevant officials to persuade the journalists to return.
Federal Budget 2025
In line with the International Monetary Fund’s (IMF) conditions for fiscal consolidation, Finance Minister Muhammad Aurangzeb maintained a permanent position in the federal budget for 2025–26.
Despite this, he expanded limited relief to that grade and offered incentives aimed at the sectors of property and construction and tried to revive industrial activity and spur economic growth.
However, the government also revealed several new income measures. A carbon tax of RS2.5 per Liters are used for gasoline, diesel and oven oil, which starts the next financial year, with plans to double it the following year.
Other tax measures include a 5 percent tax on large pensions, a 18 percent tax on imported solar panels and an increased allowance on electricity bills to cover both interest and debt repayment. In addition, the government announced that it would begin to phase out tax exemptions currently assigned tribal areas.
