Budget 2025–26: Govt mulls relief package for salaried class

The federal government is working on a relief package for the salaried class as part of the upcoming fiscal year’s budget.

According to reliable sources, officials are considering a reduction of up to 2.5% in income tax slabs.

A salary increase for government employees is also under serious discussion.

One of the key proposals suggests capping income tax at 2.5% for individuals earning Rs100,000 per month.

The aim is to ease the financial burden on the middle class, which continues to face pressure from rising inflation.

Sources confirmed that virtual negotiations are currently underway between the government’s economic team and the International Monetary Fund (IMF).

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The IMF has responded positively to the relief proposals but has stressed that the government must present an alternative revenue plan to offset any losses.

In the coming days, the IMF and government are expected to discuss key budget targets, the fiscal deficit, and projected revenue figures as part of the ongoing budget preparation process.