In an important update before the 2025-26 Budget, IMF has agreed to Pakistan’s request to increase its defence budget and give tax relief to salaried individuals.
According to sources, the monthly tax-free salary limit may go up from Rs. 50,000 to Rs. 83,000. This will bring much-needed relief to middle-class and salaried people who have been struggling with rising living costs.
In addition, the government is planning to reduce tax rates across all income levels, which will further ease the financial pressure on working individuals.
The IMF’s approval shows its understanding of Pakistan’s growing security challenges and the rising public demand to reduce the tax burden on honest taxpayers. This agreement is a step toward making the tax system more fair and supportive for regular citizens.
Finance Minister Muhammad Aurangzeb has confirmed full government support for the country’s armed forces. He stressed the importance of maintaining strong national security while also caring for the economic needs of the people.
This move is expected to bring positive change to Pakistan’s economy and build trust between the public and the government. It also reflects the IMF’s willingness to adjust its policies based on the country’s current needs.
The final details will be revealed in the upcoming budget, but the overall direction suggests a more people-friendly approach that balances national defence with relief for taxpayers.
