In a recent National Assembly session, Minister of State for Finance Bilal Azhar Kayani shared an optimistic outlook on Pakistan’s economic trajectory, crediting the current government’s efforts for stabilizing the economy and providing substantial relief to the public in the Federal Budget 2025.
A Strong Push for Economic Relief
While expressing his views on the newly presented budget, Kayani emphasized that every possible relief has been extended to the citizens, especially the salaried class and economically vulnerable segments. He assured the House that the reports of the standing committees related to the budget will be presented soon and that the government remains committed to transparency and inclusivity in the economic decision-making process.
Kayani expressed gratitude to coalition allies for their support in navigating the country’s economic challenges. According to him, it is due to this collective effort that Pakistan’s economy has begun to stabilize. Among the notable achievements cited were improvements in foreign exchange reserves and a sharp decline in the policy rate, which dropped from a staggering 22 percent to 11 percent—a move that signals a turning point in the country’s monetary policy and a vote of confidence in the government’s economic management.
Focus on Government Employees and the Middle Class
In an effort to alleviate inflationary pressures, the government announced a 10 percent salary increase for government employees. Kayani pointed out that Prime Minister Shahbaz Sharif has consistently advocated for the well-being of the salaried class, and the latest budget reflects that commitment.
One of the key announcements was the exemption of income tax for citizens earning up to Rs. 600,000 annually, a measure that will directly benefit lower-income groups. Additionally, Kayani said that revisions to tax slabs are designed to ensure greater fairness and ease for middle-class earners who are often most affected by inflation and rising living costs.
BISP Allocation Increased to Support Vulnerable Communities
A significant highlight of the 2025 budget is the increase in funding for the Benazir Income Support Programme (BISP). This step aims to expand the social safety net and provide much-needed financial assistance to low-income and disadvantaged families across the country.
According to Kayani, the decision to expand BISP funding is in line with the government’s broader vision of inclusive growth, ensuring that economic gains reach all layers of society—not just the elite. This increase is expected to offer relief to millions of households grappling with the ongoing effects of global inflation and domestic financial challenges.
IMF Agreement and Economic Performance
Touching upon international financial relations, Kayani confirmed that Pakistan has successfully reached an agreement with the International Monetary Fund (IMF). However, he stressed that the deal was secured based on strong economic performance, not just necessity. The agreement with the IMF is seen as a vote of confidence in Pakistan’s fiscal discipline and reform agenda, and it paves the way for sustained growth and international credibility.
Inflation Under Control, Momentum to Continue
Kayani asserted that inflation, which had previously surged to concerning levels, is now under control, and the government is determined to maintain this momentum. The improvement in macroeconomic indicators, such as stable exchange rates and reduced interest rates, point to sustainable growth if current policies are maintained.
He also highlighted that while Pakistan still faces challenges, the direction in which the economy is heading is encouraging. The government’s strategy of targeted subsidies, welfare expansion, and fiscal discipline is now beginning to bear fruit.
A Balanced and People-Centered Budget
The 2025 budget, as described by Kayani, reflects a balanced approach between economic recovery and public welfare. By easing the tax burden on the middle and lower classes, raising salaries, and boosting social welfare spending, the government has taken meaningful steps to protect citizens while also maintaining the confidence of international institutions.
In his closing remarks, Kayani reiterated that Pakistan’s economy is on the right track, and with continued focus on reform, relief, and recovery, the nation can expect further improvement in the coming months.
As public and parliamentary debate around the budget continues, these measures are likely to shape both economic performance and public sentiment in the months ahead.
