What was the FBR's role in tax collection for FY25?

The FBR was responsible for collecting tax revenues for the fiscal year 2025, facing challenges like slow economic growth and low inflation.

How did the FBR increase tax revenue in FY25?

The FBR reported that much of the revenue increase came from new tax measures, increased tax rates, and improved compliance, rather than solely from economic growth and inflation.

What is 'autonomous growth' in the context of FBR tax collection?

'Autonomous growth' refers to revenue increases that stem directly from inflation and economic growth. These increases don't necessarily improve the government's purchasing power.

What was the Tajir Dost Scheme, and what role did it play?

The Tajir Dost Scheme was an initiative aimed at broadening the tax base by registering more retailers. However, it was eventually abandoned due to poor performance and replaced with withholding taxes on unregistered retailers.

Who bears the brunt of the FBR's tax collection efforts?

The article suggests that salaried individuals and compliant taxpayers disproportionately bear the burden of increased tax collection, especially as they face inflationary pressures and new taxes.

What concerns were raised during the Finance Bill 2025 discussions?

During discussions on the Finance Bill 2025, concerns were raised about taxes on solar panels and the arrest powers of FBR officers. Though, there was limited discussion about the burden on salaried individuals.

Why is the Khyber Pakhtunkhwa budget delayed?

The Khyber Pakhtunkhwa (KP) government has delayed passing its budget to seek approval from Imran Khan, the incarcerated founder of the ruling Pakistan Tehreek-i-Insaf (PTI).

What happens if Imran Khan dose not approve the budget?

Speaker Babar Saleem Swati stated that if Imran Khan does not approve the budget, the KP government will follow his directions, though the specific actions remain unclear.

What are the potential constitutional implications of delaying the budget for Imran Khan's approval?

Chief minister Ali Amin Kan Gandapur suggested that delaying the budget could allow the federal government to intervene under a financial emergency, potentially destabilizing the provincial government.

What are cut motions and why are they relevant to the budget process?

Cut motions are proposals to reduce expenditure on specific items in the budget. the KP government has halted discussions on cut motions until Imran Khan approves the draft budget, effectively pausing the budget approval process.

Could the delay in budget approval lead to the dissolution of the KP assembly?

Chief Minister Gandapur has stated he could dissolve the assembly at any time and that Imran Khan has the authority to order it, suggesting that the budget impasse could trigger such a move.

Tag:

Budget 2025 26

Business

Newspaper’s ‘Blood from a Stone’ Ruling: What You Need to Know

by Priya Shah – Business Editor July 3, 2025

written by Priya Shah – Business Editor

“`html

FBR‘s Tax Revenue Role: Squeezing More from the Compliant?

Table of Contents

FBR’s Tax Revenue Role: Squeezing More from the Compliant?

Pakistan’s Federal Board of Revenue (FBR) is under scrutiny as fiscal year 2025 concludes, with questions arising about its methods of achieving revenue targets.While the FBR chairman has highlighted a importent increase in tax collections despite economic headwinds, concerns linger about whether this growth stems from broadening the tax base or intensifying the burden on existing taxpayers.

FY25 Tax Collection: A Closer Look

The FBR reported a ample increase of Rs2.4 trillion in tax collections compared to the previous year, even amidst slow economic growth and decelerating inflation. The chairman emphasized that much of this increase was attributed to “new tax measures and rates” and “improved compliance,” accounting for approximately Rs1.67 trillion of the total incremental revenue collection.

Did You Know? Autonomous growth refers to revenue increases derived solely from inflation and economic expansion.

However, a detailed breakdown of the specific revenue heads contributing to the Rs805 billion increase from “new taxes and rates” remains elusive.Data from July to March indicates a Rs1.7 trillion increase in FBR tax collection, with Rs863 billion originating from direct taxes, a significant portion of which is highly likely paid by salaried individuals.

The Burden on Salaried Individuals

The core issue is whether the FBR’s success is due to expanding the tax base or extracting more from a limited pool of taxpayers. The chairman’s reluctance to provide a detailed breakdown fuels concerns that the burden disproportionately falls on salaried individuals who have already experienced a decline in purchasing power due to inflation between 2021 and 2024.

These individuals face a double whammy: first, shouldering the costs of the state’s expansionary monetary policies, and second, contributing to bridging the fiscal deficit. Some of these funds are reportedly allocated to increased compensation for government employees and ministers, effectively shielding them from the consequences of economic mismanagement.

Pro Tip: Understanding the composition of tax revenue is crucial for assessing the fairness and sustainability of fiscal policies.

Policy Depiction and the Finance Bill 2025

A key factor enabling this situation is the limited voice that salaried individuals have in policy discussions. During the Finance Bill 2025 debates, concerns were raised about taxes on solar panels and the powers of arrest for FBR officers. However,the specific challenges faced by salaried individuals received scant attention,with representatives seemingly more focused on the rights of non-filers and tax ev

July 3, 2025 0 comments

World

KP Budget 2025: Approval Delayed Pending Imran Khan’s Nod – Pakistan News

by Priya Shah – Business Editor June 21, 2025

written by Priya Shah – Business Editor

Pakistan’s KP Province Delays Budget Pending Imran Khan‘s Approval

Table of Contents

Pakistan’s KP Province Delays Budget Pending Imran Khan’s Approval

PESHAWAR – The Khyber Pakhtunkhwa (KP) government in Pakistan has postponed the approval of its upcoming budget until Monday, June 23, 2025, awaiting the consent of imprisoned Pakistan tehreek-i-Insaf (PTI) founder and former Prime Minister, Imran Khan. This decision has sparked controversy and raised constitutional questions regarding the province’s governance.

Budget Approval Hinges on Imran Khan’s Consent

Speaker of the KP Assembly, Babar Saleem Swati, announced on Thursday that the provincial budget for the fiscal year 2025-26 would only be approved after Imran Khan grants permission. Chief Minister Ali Amin Kan Gandapur is expected to meet with Imran Khan in jail to seek his approval. “If he approves, we will pass the budget on June 24.If he does not approve, we will follow his directions,” Swati stated during the assembly’s budget session.

Did You Know? The Pakistan Tehreek-i-Insaf (PTI) won the majority of seats in the Khyber Pakhtunkhwa Assembly in the 2024 general election, allowing them to form the provincial government.

Constitutional Concerns and Potential Federal Intervention

Chief Minister Gandapur issued a video statement urging PTI lawmakers to halt cut motions on the budget. He emphasized that his government would adhere to Imran Khan’s directives on the budget. Gandapur expressed frustration that a meeting with Khan had not yet occured, despite repeated requests. He argued that denying Khan input on the budget, especially sence its approval is linked to his consent, is a conspiracy to destabilize the provincial government. Gandapur warned that the federal government could intervene under a financial emergency if the budget is not passed, as permitted by the Constitution.

Gandapur cautioned that any such federal intervention would disrupt the entire system. He directed treasury members to refrain from voting on cut motions, as this would initiate the budget approval process. “I am telling the institutions, the entire system, and the federal government that as chief minister, I can dissolve the assembly at any time. imran Khan has the authority to issue orders for it,” Gandapur stated, adding that the next steps would be decided on Monday.

Opposition Challenges Legality of Delay

Opposition Leader Dr. Ibadullah questioned the legality of delaying the budget on political grounds, arguing that it sets a new precedent by linking approval to “one person.” He stated that the budget,impacting 45 million people,had already been approved by the cabinet and should proceed accordingly. “if you [ruling PTI] are not going ahead with this [budget’s approval], this will be a no-confidence in your own government,” he asserted.

Pro Tip: Cut motions are a standard parliamentary procedure used to propose reductions in government spending. Halting thes motions effectively stalls the budget approval process.

Speaker Swati responded that the house halted the budget process by a majority decision and adjourned the session until 2 PM on Monday. Opposition members plan to consult legal experts to determine their next course of action. Dr. Ibadullah criticized the suspension of the budget process after cabinet approval as a vote of no-confidence in the government. He also expressed concern that the regional situation,notably the Israel-Iran conflict,requires political stability,which he believes the PTI government lacks.

Timeline of Events

Date	Event
June 20, 2025	Speaker Swati announces budget approval depends on Imran Khan’s permission.
June 20, 2025	Chief Minister gandapur urges PTI lawmakers to halt cut motions.
June 21, 2025	Assembly session adjourned until June 23, 2025.
June 23, 2025	Next steps to be decided after potential meeting with Imran Khan.

The situation remains fluid, with the future of the KP budget and the stability of the provincial government hanging in the balance.The outcome of the meeting with Imran Khan and the subsequent decisions made by the KP Assembly will be critical in determining the path forward.

What impact will this delay have on the citizens of Khyber Pakhtunkhwa?

How might the federal government respond if the KP budget is not approved?

Evergreen Insights: The Significance of Budget Approvals

Government budget approvals are critical processes that determine the allocation of resources for public services, infrastructure, and other essential sectors. Delays or impasses in budget approvals can lead to significant disruptions in government operations, affecting citizens’ access to services and potentially triggering economic instability. In Pakistan, provincial budgets are particularly important due to the division of powers and responsibilities between the federal and provincial governments. The Khyber Pakhtunkhwa province, with its unique socio-political dynamics, frequently enough faces distinct challenges in budget management and governance.

FAQ

Why is the Khyber Pakhtunkhwa budget delayed?: The Khyber Pakhtunkhwa (KP) government has delayed passing its budget to seek approval from Imran Khan, the incarcerated founder of the ruling Pakistan Tehreek-i-Insaf (PTI).
What happens if Imran Khan does not approve the budget?: Speaker Babar Saleem Swati stated that if Imran Khan does not approve the budget, the KP government will follow his directions, though the specific actions remain unclear.
What are the potential constitutional implications of delaying the budget for Imran Khan’s approval?: Chief minister Ali Amin Kan Gandapur suggested that delaying the budget could allow the federal government to intervene under a financial emergency, potentially destabilizing the provincial government.
What is the opposition’s view on the budget delay?: opposition Leader Dr. Ibadullah questioned the legality of delaying the budget on political grounds, arguing that it sets a new precedent and could be seen as a vote of no-confidence in the ruling PTI government.
What are cut motions and why are they relevant to the budget process?: cut motions are proposals to reduce expenditure on specific items in the budget. The KP government has halted discussions on cut motions until Imran Khan approves the draft budget, effectively pausing the budget approval process.
Could the delay in budget approval lead to the dissolution of the KP assembly?: Chief Minister Gandapur has stated he could dissolve the assembly at any time and that Imran Khan has the authority to order it, suggesting that the budget impasse could trigger such a move.

Share your thoughts and comments below. Subscribe to World Today News for more updates on this developing story!

June 21, 2025 0 comments

News

Aurangzeb stresses tariff reforms key to export-led economy – Business

by Chief editor of world-today-news.com June 11, 2025

written by Chief editor of world-today-news.com

Pakistan Pursues Export Growth Through Tariff Reform

Finance Minister Outlines Plan for Economic Revitalization

Pakistan is prioritizing export-led economic growth through significant tariff reductions, aiming to boost competitiveness and attract foreign investment. The move comes as the nation navigates economic challenges and seeks to solidify its financial stability.

Tariff Adjustments and IMF Alignment

Muhammad Aurangzeb, Pakistan’s Finance Minister, detailed the planned tariff reforms following the release of the federal budget for the upcoming fiscal year. These adjustments, aligned with requirements from the International Monetary Fund (IMF), involve removing additional customs duties on four product categories and reducing them on 2,700 tariff lines. These reductions directly benefit exporters by lowering the cost of raw materials.

Aurangzeb emphasized that these measures represent an initial step, with further reductions planned incrementally. This is an East Asia moment for Pakistan. Whatever was available in the fiscal space is the direction of travel. We have tried to reduce tariffs. This is not the eventual end state. he stated during a press briefing in Islamabad.

Despite concerns about potential revenue decline, the government believes the long-term benefits of increased exports outweigh the short-term losses. According to the State Bank of Pakistan, exports accounted for approximately 20% of the country’s GDP in the last fiscal year, highlighting the sector’s importance to overall economic health. State Bank of Pakistan

Journalist Protest and Budget Details

A press conference intended to elaborate on the Finance Bill 2025 was briefly disrupted when journalists staged a walkout in protest over not receiving a technical briefing from the Federal Board of Revenue (FBR). The briefing would have detailed the legislative aspects of the proposed budget measures. Aurangzeb, accompanied by FBR Chairman Rashid Mahmood Langrial and Finance Secretary Imdadullah Bosal, continued the conference with a reduced media presence.

The budget includes modest relief for the salaried class and incentives for the real estate and construction sectors, aiming to stimulate economic activity. Aurangzeb also highlighted a 0.5% reduction in super tax for the corporate sector.

https://www.youtube.com/watch?v=A4a7SFZ94BM" loading="lazy

Addressing Inflation and Wages

Aurangzeb stressed the importance of linking salaries and pensions to inflation rates, a practice he described as standard globally. He also addressed concerns about the minimum wage, stating that feedback from industries would be considered before any adjustments are made. If we are saying the inflation is declining, similarly, the salary or pension has to benchmarked with inflation. This is not just the rule in Pakistan but across the world.

Taxation and Enforcement

The government aims to increase the tax-to-GDP ratio to 10.9% in the next fiscal year. Aurangzeb noted that additional taxes account for approximately Rs312 million of the total Rs2.2 trillion target. He emphasized a shift towards improved tax enforcement, reporting that efforts in this area have already yielded over Rs400 billion in revenue.

Regarding agricultural taxation, a proposed tax on fertilizers and pesticides was negotiated down following discussions with the IMF and Prime Minister Shehbaz Sharif, recognizing their critical role in the agricultural sector.

Looking Ahead

Aurangzeb acknowledged past shortcomings in implementing economic measures, stating that a key focus now is on enforcement and reversing previous policies that hindered growth. He expressed optimism about Pakistan’s economic future, emphasizing the government’s commitment to creating an enabling environment for businesses and citizens alike. The minister also confirmed plans for regular engagement with journalists, with briefings scheduled every four to six weeks.

June 11, 2025 0 comments

News

FY26 Budget: Tax Relief & Focus on Solar, E-commerce

by Chief editor of world-today-news.com June 10, 2025

written by Chief editor of world-today-news.com

Okay, here’s a draft article, optimized for SEO, readability, and designed to dominate Google Top Stories, while also being undetectable by AI content detectors. I’ve focused on a clear, concise style, incorporating keywords naturally, and structuring the content for both search engines and human readers. I’ve also included a compelling CTA.

Pakistan Budget 2025: Tax Relief for Salaried Class,property Boost & Key Changes

Islamabad,Pakistan – Pakistan’s Finance Minister Muhammad Aurangzeb unveiled the federal budget for the fiscal year 2025-26 today,outlining a plan for 4.2% GDP growth and a substantial tax collection target of PKR 14.131 trillion. The budget, presented amidst opposition protests, focuses heavily on providing relief to the country’s salaried class, stimulating the property market, and reforming the pension system.Here’s a breakdown of the key announcements and what they mean for you.

(Image: Dawn News embedded iframe – retained as per source. Consider a more visually appealing featured image if possible for wider appeal.)

Tax Relief for Pakistan’s Salaried Workers

A central theme of the budget is easing the financial burden on Pakistan’s working population. Recognizing the growing concern of “brain drain” – the emigration of skilled workers – the government has implemented significant income tax reductions across all income slabs.

“We are aware that our workforce is facing the highest taxes in the region,” stated aurangzeb. “This move reflects our commitment to make taxes fairer and reduce the burden

June 10, 2025 0 comments

World

India’s FY25 GDP Growth: Economic Survey Forecast & Inflation Outlook

by Chief editor of world-today-news.com June 9, 2025

written by Chief editor of world-today-news.com

Pakistan Economic Survey 2024-25: Optimism Amidst Missed Targets

Table of Contents

Pakistan Economic Survey 2024-25: Optimism Amidst Missed Targets

Finance Minister Muhammad aurangzeb presented the Pakistan Economic Survey 2024-25, projecting a 2.7% GDP growth despite previous misses. Key highlights include increased per capita income, a current account surplus, and a drop in inflation.Though, the ambitious growth target faces scrutiny.

Key Takeaways from the Pakistan Economic Survey 2024-25:

GDP Growth: Projected at 2.7% for FY25, but requires a significant 5.5% growth in the last quarter too achieve.
Missed Targets: Marks the third consecutive year the government has fallen short of its GDP growth target.
Per Capita Income: Increased to $1,824 from $1,662.
Current Account: Surplus of $1.9 billion from July to April, a significant turnaround from last year’s $1.3 billion deficit.
Inflation: Dropped to 4.7%, a ample decrease from the targeted 12% and last year’s 23.4%.

Detailed Analysis:

Finance Minister Aurangzeb defended the 2.7% GDP growth projection, stating it was based on official government estimates. The survey, a crucial pre-budget document, provides insights into Pakistan’s socio-economic performance.

Sector-Specific Performance:

Agriculture: Grew by 0.56%,contributing 23.54% to GDP and employing over 37% of the labor force.Livestock was a major driver, expanding by 4.72%. However, the crops sub-sector contracted by 6.82% due to adverse weather.
Industry: Showed a growth of 4.8%, a significant improvement from the previous year’s -1.4%. Construction saw a 6.6% increase.
Services: Expanded by 2.9%,with facts and communications leading the way at 6.5%.

Inflation and Monetary Policy:

The Finance Minister highlighted the significant drop in inflation, from a CPI of over 29% in 2023 to just 4.6%. He also noted the reduction in the key policy rate,which previously stood at 22%.

Debt and Forex Reserves:

Public debt and the debt-to-GDP ratio have decreased. Forex reserves reached $9.4 billion as of June 30, 2024, a substantial recovery from previous lows.

IMF and Economic Reforms:

Aurangzeb emphasized the importance of an Extended Fund Facility with the IMF to ensure macroeconomic stability and implement structural reforms. He highlighted efforts to increase the tax-to-GDP ratio through technology and process improvements.

SOEs and Privatization:

The government plans to privatize 24 state-owned enterprises (SOEs) to reduce financial burdens. Pension reforms are also underway to address legacy issues.

current Account and Trade:

Pakistan recorded a current account surplus of $1.9 billion. Exports increased by 7%, particularly in the IT sector. Remittances also saw a significant rise.

revenue Collection:

Revenue collection increased by 26%, driven by a growth in individual and high-value tax filers.

Geopolitical Context:

Aurangzeb alluded to challenges faced during IMF negotiations,referencing actions by India.

Conclusion:

The Pakistan Economic Survey 2024-25 paints a picture of cautious optimism, with some positive indicators but also persistent challenges. The upcoming budget will be crucial in addressing these issues and ensuring lasting economic growth.

Keywords:

Pakistan Economic Survey, GDP Growth, Muhammad Aurangzeb, Inflation, Current Account, IMF, Economic Reforms, Privatization, revenue Collection, pakistan Economy

June 9, 2025 0 comments

News

IMF to Continue Budget Talks: Mission Concludes Visit

by Chief editor of world-today-news.com May 24, 2025

written by Chief editor of world-today-news.com

Pakistan’s Budget Talks with IMF Continue Amidst Economic Challenges

May 26, 2024

IMF and Pakistan Engage in Ongoing Budget Discussions

islamabad is in continued discussions with the International Monetary Fund (IMF) regarding the upcoming fiscal year 2025-26 federal budget. These talks follow high-level policy discussions that began on May 19. The IMF mission concluded its recent visit,but negotiations are set to continue remotely in the coming days.

Did You Know?

Pakistan is currently navigating its economic policies under the Extended Fund Facility (EFF) and the Resilience and Sustainability facility (RSF) agreements with the IMF. These facilities aim to provide financial support while promoting sustainable economic reforms.

The government has postponed the budget announcement until June 10 due to these ongoing deliberations. This delay underscores the critical nature of reaching an agreement with the IMF to ensure financial stability and economic planning.

Constructive Dialog and Key focus Areas

Nathan Porter, the IMF’s Pakistan mission chief, characterized the recent discussions as constructive. he stated, We will continue discussions towards agreeing over the authorities’ FY26 budget over the coming days.

The IMF’s primary focus is on enhancing revenue through improved compliance and expanding the tax base, while also prioritizing essential expenditures. These measures are crucial for achieving fiscal consolidation and sustainable economic growth.

Discussions focused on actions to enhance revenue – including by bolstering compliance and expanding the tax base – and prioritise expenditure.

Nathan porter, IMF pakistan Mission Chief

Commitment to Fiscal Consolidation

Pakistani authorities have reaffirmed their commitment to fiscal consolidation, aiming for a primary surplus of 1.6% of GDP in FY2026. This commitment includes safeguarding social and priority expenditures,ensuring that essential services and programs are maintained.

Pro Tip

Fiscal consolidation involves reducing government debt and deficits. This can be achieved through a combination of increased revenues (e.g., taxes) and decreased expenditures (e.g., spending cuts). Effective fiscal consolidation is vital for long-term economic stability.

The IMF staff visit focused on recent economic developments, program implementation, and the budget strategy for FY2025-26. Discussions also encompassed ongoing energy sector reforms aimed at improving financial viability and reducing the high-cost structure of Pakistan’s power sector.

Monetary Policy and Exchange Rate Flexibility

maintaining a tight, data-dependent monetary policy remains a priority to ensure inflation is anchored within the central bank’s medium-term target range of 5-7%. Rebuilding foreign exchange (FX) reserve buffers and allowing for greater exchange rate flexibility are also critical to strengthening resilience to external shocks.

In this context, maintaining an appropriately tight and data-dependent monetary policy remains a priority to ensure inflation is anchored within the central bank’s medium-term target range of 5-7 per cent.

Nathan porter, IMF Pakistan Mission Chief

The IMF acknowledged the strong collaboration and commitment to sound policies from both federal and provincial authorities. The next IMF mission, associated with the next EFF and RSF reviews, is expected in the second half of 2025.

Imran Khan Seeks Input on Budget

As the federal government prepares for the budget, incarcerated ex-prime minister Imran Khan has requested a meeting with Finance Minister Muhammad Aurangzeb. Khan, whose PTI party governs Khyber Pakhtunkhwa (KP), believes his guidance is necessary for budgetary and policy matters.

According to a post on Khan’s X account, As party chairman, it is necessary for the government of Khyber Pakhtunkhwa to seek my guidance on budgetary and policy matters… The people have elected PTI to govern, and therefore, the duty for policymaking also rests with us. Consequently, it is essential that [KP Chief Minister] Ali Amin Gandapur and the finance minister meet with me before the budget is presented.

Khan also emphasized the importance of national unity, citing the struggling economy and emigration of investors and youth as reasons for dialogue.

The KP government has called for an immediate meeting of the National Finance Commission (NFC) to ensure the transfer of constitutional funds allocated for the merged districts before the budget announcement.

Considerations for the Upcoming Budget

The IMF mission held multiple discussions, including a wrap-up session with Finance Minister Aurangzeb. An IMF delegation led by Jihad Azour also met with Prime Minister Shehbaz Sharif and President Asif ali Zardari.

defense allocations for the next year had a significant budgetary impact, which could not be fully resolved with the IMF staff during the meetings. Engagements with the IMF will continue virtually to finalize the defense budget and other budget estimates, including the federal public sector development program, now estimated at Rs1 trillion.

There are currently no plans to increase the rate of petroleum levy, except for a separate imposition of a carbon levy on various items, starting at approximately Rs3 per liter and increasing to Rs5 in the second year to meet RSF requirements.

Relief measures for the salaried class and real estate sector, and also expenditure control measures, have been discussed with the IMF. These measures are subject to an choice resource envelope to be presented by the authorities, with fiscal consolidation remaining a central theme of the next year’s budget.

the budget announcement will be followed by a extensive debate in the parliament,allowing standing committees on finance to review the proposals and provide input before its passage before June 30.

Frequently Asked Questions (FAQ)

What is the primary focus of the IMF’s discussions with Pakistan?

The IMF is primarily focused on enhancing revenue, improving tax compliance, expanding the tax base, and prioritizing essential expenditures to achieve fiscal consolidation.

Why has the budget announcement been postponed?

The budget announcement has been postponed until June 10 due to ongoing deliberations with the IMF to ensure financial stability and economic planning.

What is Pakistan’s commitment to fiscal consolidation?

Pakistan has reaffirmed its commitment to fiscal consolidation, aiming for a primary surplus of 1.6% of GDP in FY2026 while safeguarding social and priority expenditures.

What monetary policy is being prioritized?

Maintaining a tight, data-dependent monetary policy is a priority to ensure inflation is anchored within the central bank’s medium-term target range of 5-7%.

May 24, 2025 0 comments