In a world where every trip to the grocery store feels heavier on the wallet, and every electricity bill stings a little deeper, a subtle shift in tone from the country’s finance minister might not seem revolutionary. But sometimes, it’s not the size of the announcement—it’s the sincerity behind it.
Finance Minister Muhammad Aurangzeb, while attending the ‘Made in Gujranwala Exhibition’, acknowledged something that Pakistan’s salaried class has known—and felt—for a long time: the benefits of a lower inflation rate are not reaching the people.
And just like that, he said what millions have been silently thinking.
A Quiet Crisis: The Salaried Class Under Pressure
The salaried class in Pakistan has always been the overlooked middle child in the national economic story—too “privileged” to qualify for subsidies, but too “ordinary” to dodge taxes. They are the ones who line up early in the morning to get to their office jobs, who stretch every rupee of their fixed income to cover rising costs, and who are penalized simply because their income is visible and easy to deduct taxes from.
They don’t have powerful lobby groups. They don’t strike in the streets. They don’t hoard or speculate. They just work—silently, relentlessly, and increasingly, thanklessly.
So when Minister Aurangzeb pledged to provide relief to the salaried class, it sparked a flicker of cautious optimism. Could this finally be a shift in policy where fairness, not just figures, drives economic decisions?
Inflation Down. But Life Still Hard.
According to the Pakistan Bureau of Statistics, inflation figures show improvement. In March 2025, the Consumer Price Index dropped to 0.7%, and in early April, the Sensitive Price Index showed a week-on-week drop of 0.83%.
On paper, this sounds like good news. Prices of tomatoes, onions, eggs, and even petrol have dropped. But here’s the uncomfortable truth: nobody feels it.
Because for someone earning Rs. 40,000 a month with rent, bills, school fees, and medical expenses stacked like dominoes, a drop in tomato prices means little. The real burdens—the tax deductions, the high utility tariffs, and the rising cost of living—have not moved in their favor.
As the minister himself admitted, the benefits of these declining numbers aren’t trickling down to where it matters most.
A Tax System That Punishes the Honest
One of the most painful truths about Pakistan’s economic model is its over-reliance on indirect taxes—taxes on consumption like sales tax, fuel tax, or utility charges. These hit everyone, regardless of income. But they hit the poor and the salaried harder.
Even within direct taxation, more than 75% of revenue comes from withholding taxes, mostly deducted at source—from salaries, bank transactions, and utility bills. The result? The salaried class pays taxes before they even get to plan their expenses.
Meanwhile, large landowners, speculative traders, and informal businesses continue to operate with minimal scrutiny.
It’s like playing a rigged game where those who follow the rules are punished, and those who bend them are rewarded.
Sugar, Ghee, and the Elites’ Grip
One doesn’t need an economics degree to understand how market manipulation works in Pakistan.
While essential food items like onions and garlic saw a price drop, sugar and vegetable ghee prices surged by over 16% in a single week—coincidentally, two sectors dominated by politically influential families.
It’s a painful irony. The very industries that profit from weak regulation are often owned by those shaping the regulations.
For the salaried class, this means budgeting not just against inflation but against elite capture of the economy. The system doesn’t just fail them—it profits from their helplessness.
Why Acknowledgment Matters
Minister Aurangzeb’s open admission, though modest, is meaningful. In the realm of politics and policy, admitting the problem is half the battle. It shows awareness. It shows intent. And above all, it opens the door to solutions.
His pledge to provide targeted relief to the salaried class and to consider reductions in power rates is not just welcome—it’s essential.
But how can this relief be real, not rhetorical?
Relief Done Right: What Needs to Change
- Adjust Income Tax Brackets
The current brackets are outdated and too narrow. A meaningful revision that lifts the burden on lower and middle-income earners can offer immediate breathing space. - Reduce Withholding Taxes on Salaries
Rather than automatic deductions, offer tax credits or deductions for salaried people with dependents, education expenses, or healthcare costs. - Expand the Tax Net—Don’t Just Squeeze the Existing Payers
Relief for one group shouldn’t mean pressure on another. The only sustainable way to provide this relief is by widening the tax base—bringing in those who currently operate outside the system. - Lower Utility Rates Strategically
Electricity and gas bills are where most salaried households bleed financially. Gradual reductions, especially for consumption below a certain threshold, can have a huge impact. - Transparent Food Pricing Mechanism
Break the monopolies. Monitor hoarding. Introduce real-time price monitoring in major markets so price cuts reflect in retail outlets—not just government reports.
Beyond Numbers: The Emotional Toll
There’s a quiet fatigue spreading across Pakistan’s working class. It’s not just about bills and budgeting. It’s about feeling ignored. Unvalued. Invisible.
Relief, then, is not just economic—it’s psychological. It’s about signaling that the system sees them, values them, and intends to reward their honesty instead of exploiting it.
For decades, the phrase “middle class backbone of the economy” has been repeated like a mantra. Maybe it’s time the backbone got the support it’s always provided others.
Looking Forward: Opportunity in Reform
Pakistan stands at an inflection point. Bound by IMF programmes and burdened by debt, its room for maneuver is limited—but not nonexistent.
Relief for the salaried class doesn’t have to come through handouts. It can come through fairness. A fairer tax system. A more efficient power sector. A market free from monopolies. And a budget that doesn’t ask for sacrifices from the same people, year after year.
As the government prepares for the next fiscal year, it must go beyond optics and deliver policies that reflect structural compassion. Not just short-term populism.
Final Word: A Window of Hope
Minister Aurangzeb’s statement may have been brief, but for many, it was a much-needed reminder that someone in power is listening.
Now, action must follow intent. Relief must follow recognition. And policy must follow people—not just profit.
Because behind every “taxpayer” label is a father skipping dinner to buy school shoes, a young graduate calculating every rupee of a first salary, a mother balancing two jobs just to pay tuition fees.
They don’t ask for much—just fairness. And perhaps, in that, lies the foundation for a truly inclusive economy.
