TRADE & ECONOMY

Federal Finance Minister Muhammad Aurangzeb announced in the National Assembly on Monday that the Federal Board of Revenue (FBR) will no longer have the authority to arrest individuals without a warrant in tax-related cases involving amounts up to Rs50 million.
Addressing lawmakers during the ongoing budget debate, the finance minister outlined key reforms and initiatives in Budget 2025, aimed at ensuring economic stability, expanding the tax net, and providing relief to vulnerable sectors.
Aurangzeb emphasized that arrests will only be possible under specific conditions: the issuance of three notices, refusal to cooperate with an inquiry, or tampering with records. Furthermore, a three-member committee will be required to approve any arrest, and the case must be presented to a court within 24 hours.
📊 Major Announcements in Budget 2025:
- Tax Relief for Salaried Class:
The income tax rate has been slashed to 1% for annual salaries between Rs600,000 and Rs1.2 million to reduce the burden on the middle class. - BISP Budget Increased:
The budget for the Benazir Income Support Programme (BISP) has been increased to Rs716 billion, expected to benefit 10 million families across Pakistan. - Solar Panel Relief:
The General Sales Tax (GST) on imported solar panels has been reduced from 18% to 10%, though 46% of solar components will now be taxed. The step aims to balance affordability and local manufacturing protection. - Support for Farmers:
Aurangzeb announced the introduction of electronic warehouse systems for farmers to improve crop storage and reduce spoilage. - E-commerce Simplification:
The e-commerce taxation system has been simplified, with limited taxes to support the digital economy's growth. - Asset Declaration Monitoring:
The government will enforce restrictions on properties purchased beyond declared economic resources, aiming to curb illicit asset accumulation.
Aurangzeb concluded by reiterating the government's commitment to inclusive, sustainable development and responsible governance. He noted that government expenditures have been brought under control and reaffirmed that no one will be allowed to exploit the public.
The budget proposals, which aim to strike a balance between reform and relief, are currently under parliamentary review.