Karachi, November 5, 2025 – In a landmark reform move, Finance Minister Muhammad Aurangzeb announced on Wednesday that the Federal Board of Revenue (FBR) will not prepare next year’s federal budget, marking a major policy shift toward institutionalizing fiscal stability and long-term economic planning.
Speaking at the Karachi Chamber of Commerce and Industry (KCCI), the finance minister said that the Tax Policy Office has been formally separated from the FBR and placed under the Finance Division, now headed by Dr. Najeeb Ahmed Memon as Director General Tax Policy. He clarified that the upcoming budget will be crafted by this new office to ensure “policy continuity and value-driven fiscal formulation rather than mere revenue arithmetic.”
Aurangzeb explained that the reform aims to restore investor confidence and stabilize taxation policy, addressing business community concerns about frequent and unpredictable tax changes. The Tax Policy Office will maintain continuous engagement with the private sector, academia, and think tanks for inclusive policy development.
He also said that the shift from the Final Tax Regime (FTR) to the Normal Tax Regime (NTR) will be carefully reviewed in the next budget to safeguard Pakistan’s export sectors, especially textiles.
Highlighting the government’s collaborative approach, Aurangzeb shared that the Prime Minister has formed eight private-sector-led working groups to design actionable economic strategies by November 30, ensuring direct input from industry experts and the KCCI.
The minister further noted progress in IT exports ($366 million in September) and pharmaceutical growth, while reaffirming government plans to cut tariffs on raw materials to reduce industrial costs. He also confirmed that the Reko Diq project remains on track for financial close by 2028, with expected annual exports of $2.8 billion.