ISLAMABAD (Monitoring Desk): Minister of State for Finance and Head of the Prime Minister’s Delivery Unit, Bilal Azhar Kayani, addressed the National Assembly today, unveiling a series of key economic reforms and outlining the government’s fiscal achievements for the year.
Kayani announced that, in a significant move to support businesses and ensure fair treatment, arrests at the inquiry stage in sales tax cases will no longer be permitted. Following Prime Minister Shehbaz Sharif’s directives and recommendations from Farooq H. Naik and the National Assembly’s Standing Committee, amendments have been made to sales tax laws. These include prohibiting arrests in cases involving alleged tax fraud below Rs. 50 million, and requiring approval from a three-member FBR committee before any arrest. The reforms also guarantee the right to a hearing for the accused, and the previous discretionary arrest powers of tax officials have been revoked.
Outlining economic performance in the fiscal year 2024-25, Kayani highlighted that the government achieved macroeconomic stability while fulfilling IMF program conditions, all the while providing relief to the public. He said that under Prime Minister Sharif’s vision, the National Tariff Policy will be pivotal in promoting exports and ensuring sustainable economic growth. He reaffirmed that the current IMF arrangement is expected to be Pakistan’s last, contingent on export-led self-reliance.
The minister also pointed to significant economic indicators: inflation dropped from a projected 12% to 4.7%, with the monthly rate down to just 0.4%. The State Bank’s policy rate was slashed from 22% to 11%, aimed at spurring economic activity. A 10% salary increase for government employees and a reduction in income tax for the salaried class were also announced.
In a major relief measure for vulnerable populations, the budget for the Benazir Income Support Programme (BISP) has been raised from Rs. 592 billion to Rs. 716 billion, increasing support for 10 million families despite fiscal challenges. Additionally, a proposal has been introduced to reduce income tax from 5% to 1% for individuals earning between Rs. 600,000 and Rs. 1.2 million annually.
The government is also working to lower the costs of raw materials and machinery to strengthen local industry.
In closing, Kayani attributed the country’s economic turnaround to divine assistance and collective national resolve. “In the firm fortress of faith, our armed forces and people achieved victory with Allah’s help,” he said, referencing both economic recovery and the nation’s resilience in the face of regional tensions. (courtesy PTV News)
