Islamabad, March 26, 2025 – Prime Minister Shehbaz Sharif has reinstated tax rebates for teachers and researchers by approving amendments to the Income Tax Ordinance, 2001.
This significant decision was ratified during a Federal Cabinet meeting chaired by Shehbaz himself, reaffirming his government’s commitment to supporting the education and research sectors.
The newly approved Income Tax Second Amendment Bill restores tax concessions for temporary teachers and researchers, addressing longstanding concerns within the academic community. By reinstating these rebates, Shehbaz aims to incentivize professionals in these fields, fostering intellectual growth and innovation across the country.
In addition to this, the federal government has taken a firm stance against imposing additional taxes on solar energy users. Shehbaz has directed a comprehensive review of the net metering policy, ensuring that renewable energy initiatives remain viable and beneficial for the public. While the Economic Coordination Committee (ECC) had earlier approved changes to solar net metering regulations, Shehbaz has insisted on further consultations with all stakeholders before finalizing any amendments.
Furthermore, the cabinet has approved measures to pass on the benefits of lower petroleum prices to electricity consumers. According to an official statement, Shehbaz endorsed the Power Division’s recommendation to utilize savings from reduced fuel prices to lower electricity tariffs, providing much-needed relief to consumers burdened by high energy costs. Additionally, the cabinet granted approval for the Central Power Purchasing Agency to renegotiate agreements with power plants utilizing bagasse, ensuring a more cost-effective and sustainable energy supply.
The cabinet also sanctioned amendments to the Whistleblower Protection and Vigilance Commission Act, along with modifications to income tax, sales tax on services, and federal excise duties applicable within the Islamabad Capital Territory. These reforms reflect Shehbaz’s broader agenda of improving governance, strengthening transparency, and ensuring fair taxation.
Addressing economic matters, Shehbaz expressed his satisfaction over the recent staff-level agreement between Pakistan and the International Monetary Fund (IMF) under the Extended Fund Facility. He emphasized that the IMF’s endorsement of Pakistan’s economic policies signifies growing confidence in the country’s financial stability. Shehbaz acknowledged the IMF’s recognition of Pakistan’s progress in macroeconomic stabilization, fiscal discipline, and inflation control, noting that these achievements align with his administration’s long-term vision for economic growth.
Commending Finance Minister Muhammad Aurangzeb and the economic team for securing key financial agreements, Shehbaz reiterated the government’s commitment to tax reforms, energy sector improvements, and fostering private sector growth. Concluding the meeting, Shehbaz called for collective national efforts, highlighting that Ramadan is a time to reflect on Pakistan’s blessings and reinforce a shared responsibility to ensure the country’s prosperity.