Finance Minister Muhammad Aurangzeb has announced plans to alleviate the financial strain on salaried workers in the upcoming 2025-26 budget. This move follows the imposition of a 35% income tax rate on salaried employees, who face limited options for tax avoidance due to automatic salary deductions.
During an event in Lahore, Minister Aurangzeb emphasized the crucial role of the private sector in bolstering Pakistan’s economy. He highlighted the gradual increase in foreign exchange reserves as a positive indicator of economic stability.
Aurangzeb also reiterated the government’s support for the construction sector, acknowledging its contribution to economic development. However, he clarified that the government would discourage speculative real estate practices, such as plot trading, as these are unsustainable and detrimental to long-term economic growth.
By reducing the tax burden on salaried individuals, fostering private sector growth, and promoting responsible real estate development, the government seeks to create a more balanced and stable economy.
