ISLAMABAD – There is good news for salaried class in the federal budget as the federal government has hinted at further reductions in electricity prices.
The Federal Minister for Finance has announced relief for the salaried class in the upcoming budget. He stated that efforts are underway to reduce electricity bills further by July or earlier, and discussions with the IMF on this matter are ongoing.
Finance Minister Muhammad Aurangzeb said the IMF Executive Board is expected to approve the staff-level agreement in May. A comprehensive plan to provide relief to the salaried class has been prepared and will also be shared with the IMF.
He added that all IMF targets have been met, although some were delayed, they have now been completed. He further mentioned that Pakistan will receive the next $1 billion tranche as well as funds under climate financing.
The finance minister also stated that 98 percent of proposals from the public and private sectors have been received for budget preparation, and both sectors are working together on these. Before presenting the budget in the assembly, relevant sectors will be informed about which proposals will be implemented, and reasons will be given for those that cannot be acted upon.
He said the finalized budget will be implemented from July 1, after which no changes will be made to ensure prompt execution.
Muhammad Aurangzeb noted that tax collection from traders has improved but the trader-friendly scheme should not be linked with tax collection. A simplified tax form is being developed that anyone can fill out independently. The tax policy department 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 before the 2025–26 fiscal year through surrender orders.
The sources revealed that the ministry demanded the return of development funds exceeding the revised PSDP (Public Sector Development Programme). This move is aimed at avoiding audit objections for the fiscal year 2024–25.
The Ministry of Finance has informed all federal ministries and divisions to implement this decision.
An initial amount of Rs 1,400 billion was approved for the federal development program for the current fiscal year. Based on that, ministries and divisions submitted relevant demand orders and grants. However, the PSDP for 2024–25 was later revised to Rs 1,100 billion.
The sources said that the funds exceeding the revised PSDP woul either be surrendered or adjusted. The federal government is preparing the 2025–26 budget in coordination with the IMF.
