The newly announced Budget 2025 for salaried class brings some tax relief—but is it enough? For many in the salaried segment, hopes were high that this budget would go beyond temporary fixes and finally address Pakistan’s deeper economic issues.
Partial Relief Through Interest Savings
The government has reduced the fiscal deficit target significantly, from 5.9% to 3.9% of GDP, partly by saving Rs1 trillion in debt payments thanks to falling interest rates. These savings allowed limited income tax relief for salaried individuals and tax concessions for powerful real estate stakeholders.
Missed Chance for Structural Reform
Despite economic stability over the past year, Budget 2025 lacks bold steps toward structural reforms. The corporate sector, burdened by high tax rates, saw only a marginal reduction in the super tax—leaving industries overtaxed and under-supported.
Uneven Burden on Industry & Salaried Workers
Industries form just 18% of the economy but bear 60% of the tax load, impacting job creation and investment. Without real reforms or incentives for foreign direct investment, the government’s lofty export target of $100 billion under the Uraan programme seems distant.
Final Word: Stability is Here, But Growth Remains a Question
For the salaried class, Budget 2025 offers a few financial breather moments but fails to deliver transformative change. With growth targeted at 4.2%, many remain skeptical: can stability alone drive prosperity?
