Minister for Planning, Development & Special Initiatives of Pakistan, Ahsan Iqbal, has said that the federal government is considering measures to simplify the country’s tax system and provide tax relief to salaried individuals as part of preparations for the upcoming federal budget.
Speaking about the government’s economic priorities, Ahsan Iqbal said rising economic pressures had increased the tax burden on citizens, adding that discussions were continuing with the International Monetary Fund (IMF) regarding possible relief measures.
He said the government’s objective was to reduce tax-related difficulties in order to stimulate economic activity and improve the business environment.
According to the minister, authorities were seeking to create conditions in which businesses could operate more easily and profitably, encouraging greater domestic and foreign investment.
Ahsan Iqbal also said the agriculture and technology sectors would remain among the government’s key priorities in the forthcoming budget.
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He stated that special incentives were being considered to support growth in IT exports, while additional planning was underway for the development of the agricultural sector.
Discussing the federal development budget, the minister said various ministries had proposed projects worth nearly Rs3tn despite limited fiscal space.
He added that the Public Sector Development Programme (PSDP) allocation was expected to remain close to Rs1.125tn, meaning the government would need to reassess project priorities.
Ahsan Iqbal said final decisions on tax reforms and relief measures would depend on broader economic conditions and the outcome of ongoing negotiations with the IMF.
Pakistan has faced mounting fiscal pressure in recent years as authorities attempt to stabilise the economy through tax reforms, spending controls and international financial support programmes.
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