Karachi, May 26, 2025 — Finance Minister Muhammad Aurangzeb has announced major relief for Pakistan’s salaried class by introducing a much simpler income tax return process.
Speaking at an event in Islamabad hosted by Karandaaz Pakistan and the Pakistan Banks Association (PBA), Aurangzeb said the government is cutting down the number of required entries on the tax return form from 150 to just nine for the salaried class.
Currently, many in the salaried class find the tax filing process unnecessarily complicated. Aurangzeb acknowledged this issue and explained that most individuals in this group don’t own shares or have multiple income streams, so asking them to fill out 140 or more fields is unreasonable. The simplified version will include five fields related to assets (wealth) and four related to income.
He added that this new system aims to be in place by the end of September 2025, just in time for the next tax cycle. “The goal is to make compliance easier for the salaried class and increase overall tax filings,” Aurangzeb noted.
The Finance Minister also spoke about the upcoming federal budget for FY2025-26, which will be presented on June 10. He said the government is planning “bold measures” that go beyond mere numbers. “The budget must reflect the direction of the economy, not just balance revenue and expenses,” said Aurangzeb.
He highlighted that efforts were made to derail Pakistan’s talks with the International Monetary Fund (IMF), especially regarding the Extended Fund Facility (EFF) and the $1.3 billion under the Resilience and Sustainability Facility (RSF). However, Pakistan’s case was ultimately approved on merit.
On broader economic issues, Aurangzeb stressed the need to end the cycle of boom and bust. He emphasized that Pakistan must stick to structural reforms to achieve long-term economic stability. He also admitted that the government fell short on state-owned enterprise (SOE) reforms last year but promised renewed focus in this area.
Addressing debt concerns, he revealed that debt servicing costs have been reduced by Rs1 trillion in the current fiscal year. Plans are also in place to modernize the debt management office next year.
In closing, Aurangzeb expressed hope for Pakistan’s future, but reiterated that meaningful progress requires continued unity and sustained reform—particularly for the benefit of the salaried class.