The net revenue receipts have been estimated at 11072 billion rupees. The FBR collections are estimated to be 14131 billion rupees
ISLAMABAD ( WEB NEWS )
The National Assembly has passed the federal budget for the next fiscal year, with a total outlay of 17,573 billion rupees, focusing on sustainable and inclusive economic growth.
A motion to this effect was moved by Minister for Finance and Revenue Senator Muhammad Aurangzeb.
The House passed the Finance Bill, 2025 with certain amendments, giving effect to the financial proposals of the federal government for the year beginning on the 1st July 2025.
The budget projects an economic growth rate of 4.2 percent and an inflation rate of 7.5 percent for the next financial year.
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The net revenue receipts have been estimated at 11072 billion rupees. The FBR collections are estimated to be 14131 billion rupees, which is 18.7 percent higher than the outgoing fiscal year. Non-tax revenues will be 5147 billion rupees.
2550 billion rupees have been earmarked for defense, 1055 billion rupees for the pension expenditures and 1186 billion rupees for subsidy on electricity and other sectors.
The main relief features include ten percent increase in salaries, seven percent in pensions and tax relief for the salaried class across all slabs.
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716 billion rupees have been allocated for Benazir Income Support Program.
One trillion rupees have been allocated for PSDP. The biggest amount of 328 billion rupees has been earmarked for transport infrastructure projects.
The PSDP portfolio for next fiscal year has been aligned with the objectives of URAAN Pakistan, while priority has been attached to high impact, near completion, foreign funded projects and new initiatives of national importance. 32.7 billion rupees have been earmarked for Diamer Bhasha, 35.7 for Mohmand Dam, 3.2 billion rupees for K-IV, ten billion rupees for lining of Kalri Baghar Feeder and 4.4 billion rupees for installation of telemetry system on Indus Basin System.
Higher Education Commission will be given 39.5 billion rupees for one hundred and seventy projects. 18.5 billion rupees have been set aside in the PSDP for various education projects.
Four billion rupees have been allocated for ten ongoing and five new schemes in the agriculture sector.
The budget encapsulates incentives for the construction industry which include reduction in withholding tax on purchase of property.
Amendments Proposed by Members in Finance Bill
During the discussion on the Finance Bill, members proposed various amendments. Mubeen Arif suggested that public opinion should be sought on the bill and that it should be postponed until public feedback is received. Aaliya Kamran stated that the real stakeholders are the people, as they are the ones who pay taxes, and therefore public consultation is necessary. However, the amendments proposed by Aaliya Kamran and Mubeen Arif were rejected by a majority vote.
Strict Amendments Approved for Sales Tax Fraud
During the clause-by-clause approval of the Finance Bill, strict amendments regarding the arrest of individuals involved in sales tax fraud were approved.
According to the bill:
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Arrests for sales tax fraud will apply in cases involving forgery or manipulation related to tax amounts.
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Issuing tax invoices without dispatching goods will be considered tax fraud.
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Tampering with sales tax records will also fall under sales tax fraud.
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Fraudulent tax invoices will be treated as tax fraud.
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Erasing evidence of tax liability or deliberately providing false information in tax returns will be considered tax fraud.
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Officers of companies involved in tax fraud must be served three notices before any arrest.
Under the amended Finance Bill 2025–26:
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Inquiries into sales tax fraud will not be confidential.
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If the accused cooperates with the inquiry, they will not be arrested.
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Attempting to flee the country or destroy evidence of fraud will lead to arrest.
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If the fraud amount exceeds PKR 50 million, arrest will be mandatory.
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Arrests require approval from a committee comprising the Member Operations and Member Legal.
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Suspects must be presented before a magistrate within 24 hours of arrest.
Approval of Additional Clauses in Finance Bill 2025
Clause 3 of the Finance Bill 2025 was approved, which includes the imposition of a 2.5% carbon levy on petroleum products. All opposition amendments were rejected by majority vote.
During the debate and voting on Clause 4, the government passed proposed amendments to the Customs Act 1969 by a majority. Finance Minister Muhammad Aurangzeb’s amendments received 201 votes in favor, while 57 opposition votes were cast against. The Speaker called for a vote count at the opposition’s request, confirming the government’s strong majority.
New Measures Introduced in the Finance Bill
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Installation of a cargo tracking system to prevent smuggling within and outside Pakistan.
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The system will electronically monitor the import, export, transit, and delivery of goods.
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A new e-bilty system (electronic consignment note) will be introduced for digital documentation.
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Vehicles involved in import, export, or delivery must be integrated with the e-bilty system.
Salaries and Allowances Amendment
An amendment related to the Salaries and Allowances Act for Members of Parliament was also introduced. Clauses 4A and 4B were added to the Finance Bill 2025. It was approved that federal ministers and ministers of state will receive salaries equal to that of Members of Parliament. The 1975 Act was amended by majority vote. Previously, the federal cabinet had approved the Finance Bill 2025–26 in a meeting chaired by Prime Minister Shehbaz Sharif.
Sales Tax on Solar Panels and Other Approvals
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Clause 3 of the Finance Bill 2025 was approved.
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A 2.5% carbon levy on petroleum products was passed.
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A 10% sales tax on solar panels was also approved.
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Clauses 6 and 7 of the Finance Bill were passed by majority vote.
Amendments to Income Tax Ordinance 2001 Approved
All opposition amendments were rejected. Key changes included:
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Individuals earning up to PKR 600,000 annually will be exempt from income tax.
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Incomes between PKR 600,001 to 1.2 million: 1% income tax on the amount above PKR 600,000.
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Incomes from PKR 1.2 million to 2.2 million: fixed tax of PKR 6,000 plus 11%.
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Incomes from PKR 2.2 million to 3.2 million: PKR 116,000 fixed tax plus 23%.
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Incomes from PKR 3.2 million to 4.1 million: PKR 346,000 fixed tax plus 30%.
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Incomes above PKR 4.1 million: PKR 616,000 fixed tax plus 35%.
Additionally, 5% tax will be imposed on annual pensions exceeding PKR 10 million, while pensions below this amount will remain tax-exempt.
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PPP Chairman Bilawal Bhutto Zardari’s Remarks
Pakistan People’s Party (PPP) Chairman Bilawal Bhutto Zardari has declared that his party is supporting the federal budget 2025-26 because the government has accepted all their demands.
During the National Assembly session on Thursday, Bilawal said that the government has announced 20 percent increase in the Benazir Income Support Programme (BISP) and therefore PPP is happily supporting the budget.
He criticised the Pakistan Tehreek-e-Insaf (PTI), saying the party always attempted to reduce funding for the BISP in every budget. On the other hand, Bilawal said, “Prime Minister Shehbaz Sharif increased the BISP allocation in every budget.”
Bilawal added that tax relief has been provided to the salaried class and the government has reduced the solar tax by 50pc on PPP’s recommendation. He also noted that changes were made to FBR regulations following PPP’s objections. he stated:
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A 20% increase has been made in the Benazir Income Support Programme (BISP).
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Unlike PTI, which tried to reduce BISP funding in every budget, PM Shehbaz Sharif’s government has increased it every year.
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Income tax has been reduced for salaried individuals.
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The solar tax was cut by 50% at PPP’s request.
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Amendments were made to FBR laws in response to their objections.
He thanked Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb and reiterated PPP’s support for the budget.