Big Budget Relief Coming for Salaried Individuals, Registered Businesses

ISLAMABAD: The federal government claims that plans are underway to include relief for the salaried class and registered business owners in the budget for the upcoming fiscal year.

Government insiders claim that the budget will feature a number of initiatives to make life easier for taxpayers, according to media reports.

A specific rescue package is being planned for salaried individuals and enterprises that are part of the recorded economy, according to Finance Advisor Khurram Shahzad. In order to directly assist the populace, he added, the government is also striving to lower energy costs and improve tax rates.

Khurram Shahzad predicts that Pakistan’s GDP will grow by 4% this fiscal year and by roughly 5% the next year.

Remittances are anticipated to surpass $41 billion for external financial stability, he said.

In order to prevent future balance of payments problems, the government is implementing a careful and sustainable economic policy this time, according to the Finance Advisor, who also mentioned the preparations for the impending economic review with the IMF.

He added that 24 government agencies that put a strain on the national coffers would be privatized.

Khurram Shahzad stated that the rate of inflation has decreased from 25 to 30 percent to roughly 5 percent. The government wants to raise people’s incomes since doing so will encourage exports and sustained economic growth.

He also discussed tax collections, stating that the federation collected Rs 1.3 trillion in taxes last year, resulting in a tax-to-GDP ratio of 11.3 percent. By international standards, this percentage should be closer to 18 percent.