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JI Proposes Large Tax Cuts and IPP Audits Ahead of Pakistan Budget

The party says broad salary tax relief, lower fuel and utility prices, and forensic reviews of energy contracts would relieve pressure on the middle class and public finances.

Overview

  • Jamaat-e-Islami leader Hafiz Naeemur Rehman set out the package at an Islamabad seminar on Wednesday and asked the government to abolish income tax on monthly salaries up to Rs125,000.
  • Rehman said salaried taxpayers contribute about Rs605 billion a year and proposed halving tax rates for higher salaried groups and cutting the top rate from 35 percent to 15 percent.
  • He accused the state of paying large sums to Independent Power Producer owners, cited an alleged Rs2 trillion annual bill, and demanded forensic audits and a halt to fresh power purchase agreements.
  • The JI platform also calls for immediate cuts to electricity, gas and petrol prices — naming a Rs230 per litre target for petrol — plus a rise in education spending to 4–5 percent of GDP to address widespread school absence.
  • These demands are a public pre-budget campaign and have not been adopted by the government, but they could shape debate over fiscal and energy choices as budget decisions are finalised.