ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb said on Monday there was no proposal under consideration currently to increase the salaries of defence personnel.
However, he announced that country’s upcoming budget would see an increase in the defence allocations. “All requirements of the armed forces will be met — not only because it’s their need, but also the country’s,” he told reporters after addressing an event titled ‘Impact Financing’, jointly organised by Karandaaz Pakistan, Pakistan Banking Association, UK Aid, and the Bill & Melinda Gates Foundation here.
When asked about possible tax relief for the salaried class, Aurangzeb refrained from a direct response. Nonetheless, in his earlier remarks, he acknowledged the existing tax burden on salaried individuals and emphasised the need for broadening the tax base. “All segments of society must contribute to the tax net,” he stressed.
The minister recalled that India attempted to block Pakistan’s case at the International Monetary Fund (IMF) Executive Board. However, he affirmed that Pakistan’s commitment to all quantitative and structural benchmarks rendered such efforts ineffective.
“India tried to delay the Board meeting and push Pakistan’s case off the agenda,” the finance minister revealed. “We asked the IMF to evaluate our programme purely on merit, and they did — because all targets were achieved,” he added.
Aurangzeb acknowledged that had there been any shortcomings in meeting the IMF conditions, Pakistan would have faced serious setbacks. “Fortunately, that did not happen,” he added.
On the current negotiations with the IMF, he said the visiting IMF team had returned, and virtual discussions were underway to finalise outstanding issues. The minister said he was very thankful to the IMF’s Director for Middle East and Central Asia, Jihad Azour, along with the IMF team, who extended full support to Pakistan. “We’re hopeful of progress by the end of this week,” he added.
Commenting on speculation about the federal budget announcement being delayed from June 2 to June 10, the minister said the prime minister was on a diplomatic visit to a friendly country to express gratitude for its recent support during a time of regional tension.
In his keynote address, Aurangzeb called for national unity on the economic front. “The country stood together during recent aggression — we need the same collective resolve to stabilise the economy,” he said.
He also announced that the World Bank was set to provide $20 billion under the new Country Partnership Strategy (CPS), while the International Finance Corporation (IFC) would mobilise funding for the private sector. He urged financial institutions to improve their capacity for assessing impact performance, stating that “funding is one aspect — but we must also focus on building human capital within the financial sector.”
Speaking at the same event, Jo Moir, Director Development at the British High Commission Islamabad, reiterated the UK’s longstanding support. “This training highlights our decade-long engagement with Pakistan’s financial sector. Karandaaz, which we helped establish as a specialised impact finance entity, has now become a beacon of scalable and sustainable financial models.”
