The debut of the FY25 finance bill has stirred widespread debate and dissatisfaction across Pakistan, impacting both households and businesses alike.

Increased Taxes Hit Salaried and Middle-Income Classes

The new finance bill introduces higher taxes and surcharges, significantly affecting the salaried and middle-income segments. This move is expected to reduce take-home pay amidst rising inflationary pressures.

Corporations Pass Tax Burdens to Consumers

Facing elevated taxes themselves, corporations are likely to transfer these costs to consumers, intensifying financial strain on middle-class professionals and technical experts.

Impact of GST on Basic Commodities

The inclusion of milk under GST has sparked concerns about escalating prices for essential products. This adjustment could lead to a shift from branded to unbranded dairy products, further burdening consumers.

Disparities in Taxation between Salaried and Corporate Sectors

Highlighting inequities, the finance bill imposes a higher tax rate on salaried individuals compared to corporations, aggravating financial disparities.

Additional Surcharge for High Net Worth Individuals

High net worth individuals face an additional 10% surcharge on income tax, contributing to broader discontent with the tax structure.

Amendments Affecting Equity Investments

Changes in tax rates for capital gains on stock funds aim to moderate impacts on equity investments, reflecting attempts to balance financial policies.

Government’s Fiscal Strategy and IMF Prospects

Despite public discontent, the Finance Minister anticipates fiscal consolidation and seeks IMF support to bolster Pakistan’s economic outlook.


While the government pursues fiscal stability and international backing, the public faces mounting financial pressures and uncertainty. As Pakistan navigates these economic challenges, the true implications of the FY25 finance bill remain to be seen amidst ongoing inflationary concerns and monetary policy adjustments.

Caution on IMF Speculations

Reports on an upcoming IMF meeting should be approached with caution, as official announcements are awaited regarding any potential financial assistance to Pakistan.

Monitoring Monetary Policies and Inflation Targets

With recent monetary tightening efforts falling short of inflation targets, the efficacy of fiscal measures in curbing economic strains remains uncertain.




Experienced Senior Research Analyst



Sikander Raza, a Senior Technical Analyst



Hamza Saleem, a Senior Business Analyst



Irsa Sajjad, as a Research Analyst for Equities

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