PM Shehbaz Hails Relief-Focused Budget as Government Announces Tax Cuts and Salary Increase

ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif Friday said the government presented the budget of relief and public welfare, reduced the burden on the salaried class and took steps for increasing exports, promoting industries and agricultural growth, investment and economic development.

In a statement regarding the federal budget, he said, “I am immensely grateful to Allah Almighty, by whose grace and the prayers of the nation, we have achieved economic stability, and thanks to whom we have provided relief to the people in the budget today.”

“I deeply thank every citizen of Pakistan who showed patience and forbearance in the most difficult circumstances and despite facing difficulties played a full role for the economic stability of our country,” he added.

Finance Minister Muhammad Aurangzeb on Friday announced a 7% ad hoc increase in the salaries of federal government employees and a 7% rise in pensions for retired federal employees as part of the federal budget measures aimed at providing relief amid inflationary pressures.

Prime Minister said he had promised the people that after achieving economic stability, its fruits would be directly delivered to the common man.

“Alhamdulillah, now the time of prosperity has begun,” he remarked, adding, “The improvement and relief that I had promised you after the difficult period, and the relief that my nation truly deserves, has officially begun.”

The Prime Minister said, “The main objective of this budget is that the fruits of strengthening the economy should reach the people directly and every section of society should be involved in the development process.”

He thanked Deputy Prime Minister Ishaq Dar, Field Marshal Syed Asim Munir, Finance Minister Muhammad Aurangzeb, the entire economic team, Chief Ministers of the four provinces, and all the relevant institutions, whose tireless work, professional ability, and passion made this relief possible.

“From providing the people with the facility of their own roof under the Prime Minister’s Apna Ghar program to tax relief, to creating employment opportunities for the youth, reducing the burden on the middle class, and promoting business activities, your government has taken concrete and effective steps,” he mentioned.

He said, “God willing, this journey of development will continue in full swing and we will take all possible steps for the welfare of the people.”

Finance Minister Muhammad Aurangzeb on Friday announced a 7% ad hoc increase in the salaries of federal government employees and a 7% rise in pensions for retired federal employees as part of the federal budget measures aimed at providing relief amid inflationary pressures.

Presenting the budget in Parliament, the finance minister said the government recognized the economic challenges faced by lower-income groups and had decided to increase government employees’ salaries by 7%. He added that pensions of retired federal government employees would also be raised by 7%.

The minister further announced a 10% increase in the minimum monthly wage to support workers and improve their purchasing power.

Highlighting relief measures for salaried individuals and taxpayers, Muhammad Aurangzeb said the government had decided to reduce income tax rates across four income slabs.

According to the proposal, the tax rate for individuals earning between Rs2.2 million and Rs3.2 million annually will be reduced from 23% to 20%. For those earning between Rs3.2 million and Rs4.1 million, the rate will decrease from 30% to 25%.

Similarly, taxpayers with annual incomes ranging from Rs4.1 million to Rs5.6 million will see the tax rate reduced from 35% to 29%, while those earning between Rs5.6 million and Rs7 million will benefit from a reduction from 35% to 32%.

The finance minister also announced the abolition of the surcharge on the salaried taxpayers, saying that the move would further reduce the tax burden and provide additional relief to taxpayers.