Budget Brings Good News for Salaried Class; Electricity Bills to Be Further Reduced

Islamabad: The federal budget has brought good news for salaried individuals as the government announced plans to provide relief to them. Additionally, the government has also hinted at further reductions in electricity bills. According to Express News, the Federal Minister for Finance, Muhammad Aurangzeb, stated that efforts are underway to reduce electricity bills by July or even earlier. The government is in discussions with the International Monetary Fund (IMF) to implement these changes.
Minister Aurangzeb confirmed that all IMF targets have been met, and the staff-level agreement will be approved by the IMF’s Executive Board in May. He added that a complete plan to provide relief to the salaried class has already been formulated and will be shared with the IMF.
He further explained that despite slight delays, all IMF goals have now been achieved. Pakistan is expected to receive the next tranche of $1 billion, along with climate financing funds.
Regarding the preparation of the budget, the Finance Minister revealed that 98% of the proposals for the federal budget have been received from both the public and private sectors. The government is working with the private sector to review these proposals and will inform relevant sectors about which recommendations will be implemented before presenting the budget in the assembly.
The budget is expected to be finalized by July 1, and there will be no changes thereafter, allowing for immediate implementation.
On the tax front, the Minister noted improvements in tax collection from traders but emphasized that the “business-friendly tax scheme” should not be directly linked to tax collection. A simplified tax form is being developed to make tax filing easier for everyone, and the tax policy division will now operate under the Ministry of Finance.
Federal Development Budget to be Revised through Surrender Orders
Meanwhile, the Ministry of Finance has decided to revise the federal development budget for FY 2025-2026 through surrender orders. Sources indicate that the revised Public Sector Development Program (PSDP) will require the return of additional development funds. This decision was made in light of audit objections for the financial year 2024-2025.
The Ministry has informed all federal ministries and divisions of this decision, which will ensure adjustments and withdrawals as per the revised PSDP. Initially, a development budget of 1,400 billion rupees was approved for FY 2024-2025, but this was later revised to 1,100 billion rupees.
According to sources, excess funds from the revised PSDP will be surrendered or adjusted. The federal government is also working with the IMF to prepare the budget for FY 2025-2026.