The silent squeeze

In the wake of recent economic reforms, Pakistan has seen encouraging signs of macroeconomic recovery. Inflation is on the decline, the rupee has remained relatively stable, and remittances have picked up. The government’s fiscal discipline, supported by timely decisions around interest rate management, energy pricing, and the International Monetary Fund-programme compliance has helped rebuild confidence among international partners and investors. Business sentiment, while still cautious, is improving, and the groundwork for a more stable financial environment is being laid. These are significant achievements. Steering the economy out of crisis mode and back onto a path of growth is no small feat. But as the country looks to deepen these gains and build a more resilient system, attention must now shift toward long-term structural fairness, particularly in the tax regime for individual contributors, of which the salaried class is the biggest component.