Government defends relief-focused federal budget

Federal Information Minister Attaullah Tarar has described the federal budget for the upcoming fiscal year as a positive and relief-oriented package aimed at supporting taxpayers, businesses, exporters and the salaried class while strengthening Pakistan’s economic recovery.

Speaking at a media briefing alongside Bilal Azhar Kayani, Tarar said the government inherited an economy facing severe challenges and worked over the past two years to stabilize key macroeconomic indicators through reforms and improved governance.

The minister highlighted reforms within the Federal Board of Revenue (FBR), including digitisation, merit-based appointments, enhanced transparency and the introduction of technology-driven systems to improve tax collection and reduce corruption. He said customs clearance procedures have been modernised through faceless systems, reducing delays and direct interaction between businesses and officials.

US Refuses to Share Iran Deal Details With Israel, Reports Say

Tarar also pointed to enforcement measures in sectors such as sugar, tobacco, beverages and cement, where monitoring systems and compliance initiatives were introduced to improve tax collection. According to the minister, these efforts contributed significantly to government revenues and helped broaden the tax base.

Discussing relief measures in the budget, he said tax rates for various income brackets in the salaried class had been reduced. The government has also provided incentives for homebuyers and continued support for housing initiatives under the Apna Ghar programme. Exporters have received relief through the abolition of certain taxes, while measures have also been introduced to support industry and encourage economic activity.

The minister maintained that the government’s approach was based on expanding the tax net rather than increasing the burden on existing taxpayers. He argued that economic reforms and stronger enforcement mechanisms have created fiscal space for relief measures included in the budget.

Kayani echoed these remarks, stating that the budget offers support to salaried individuals, exporters, industry, construction and young people. He added that the government aims to promote economic growth, strengthen tax compliance and provide targeted relief while maintaining fiscal stability.