'Budget relief constrained by IMF programme'

ISLAMABAD: Minister of State for Finance Bilal Azhar Kayani has said the government plans to ease the tax burden on salaried individuals in the coming budget, but added that room for major relief remains limited because of commitments under the International Monetary Fund programme.

According to a statement issued on Saturday, Kayani made the remarks while addressing a pre-budget seminar at the Rawalpindi Chamber of Commerce and Industry. He said the federal budget is expected to be presented in the first week of June.

The minister also said there would be zero tolerance for harassment by tax authorities, as the government prepares its budget proposals amid continued fiscal constraints.

Economic stability and fiscal discipline

Kayani said the government had achieved economic stability over the past two years through fiscal discipline. He said this had helped improve foreign exchange reserves and rebuild confidence among international financial institutions.

He also said that despite regional conflicts, the rupee had remained stable and Pakistan had not experienced fuel shortages.

According to the statement, Kayani said the government’s key priorities include boosting exports and reinforcing the economy so that Pakistan can eventually reduce its reliance on IMF programmes.

Measures for SMEs and exporters

During the seminar, the minister said special steps were being introduced for small and medium enterprises. He added that the period for utilisation of imported goods by small exporters had been extended to 18 months.

The remarks indicate that the government is seeking to provide targeted support to businesses while working within the limits imposed by its broader fiscal framework.

Privatisation process under way

Kayani also spoke about the privatisation agenda, saying the process was moving ahead quickly. He said the privatisation of Pakistan International Airlines had been completed.

In addition, he said three power distribution companies were currently undergoing privatisation.

The minister’s comments come as the government prepares the next federal budget and weighs demands for tax relief against the restrictions of its economic reform commitments. His remarks at the RCCI seminar outlined the administration’s position that while some relief for the salaried class is under consideration, the scope for broader concessions remains restricted under the existing IMF programme.

He also linked the government’s economic approach to longer-term goals, saying that stronger exports and a more resilient economy were necessary if Pakistan was to move away from repeated dependence on external lending arrangements.