The National Assembly on Thursday approved the federal budget of RS17.57 billion billion for fiscal year 2025-26 with certain amendments, rejected the opposition calls to public consultations and eliminate the way for a series of fiscal reforms, income measures and government spending plans for next year.
The 2025 Finance Law Project, with the objective of giving effect to the Federal Government’s financial proposals for the fiscal year as of July 1, 2025, and amending several existing laws.
The session, chaired by President Ayaz Sadiq, began with the Minister of Finance, Mohammad Aurengzeb, moving the Finance Law 2025, which was taken for a clause review by clause.
Opposition members proposed an amendment to delay the approval of the bill and seek a public consultation, but this amendment was overwhelmingly rejected.
Read more: The Government agreed to exempted income tax in the annual salary below RS1.2M: Bilawal
Aurengzeb moved to present the Finance Law draft in the manner recommended by the Permanent Committee, despite opposition objections. One of the key clauses approved during the session addressed sales tax fraud. The bill introduced measures to stop the persons involved in fiscal fraud, including sanctions for issuing invoices without the delivery of goods or manipulation of fiscal records.
In addition, the amendments allowed the arrest of people who tried to destroy fiscal evidence or provide false information in tax declarations.
Prime Minister Muhammad Shehbaz Sharif meets the president of the Popular Party of Pakistan, Bilawal Bhutto Zardari, during the budget session in the National Assembly. pic.twitter.com/fznnwsfqov
– Pakistan government (@Govtofpakistan) June 26, 2025
Another important disposition of the 2025 Finance bill included a Carbon Tax of RS2.50 per liter in oil products, which was approved by clause 3. The opposition amendments in this clause were also rejected. In addition, the bill imposed a 10% sales tax on solar panels to promote sustainable energy while generating government income.
The 1969 Customs Law was also amended to improve efforts against consumption. The new provisions demanded the installation of loading systems for a better monitoring of imports, exports and transit products. Sanctions were introduced for not using the electronic invoice system (e-facture) for the domestic movement of goods, and severe fines and imprisonment were imposed to manipulate with follow-up devices.
The bill also introduced significant changes in the income tax system for salaried individuals. Employees who won up to RS600,000 annually were tax exempt, while new tax slabs were introduced for higher income groups.
In addition, the Chamber approved amendments on the salaries and assignments of the parliamentarians. According to these changes, the determination of the salary of the parliamentarians would be handled by the Chamber Committee, instead of the Secretariat. Federal ministers and state ministers would now receive the same salary as members of Parliament.
In his statement after the approval of the budget, the president of the PPP, Bilawal Bhutto Zardari, expressed its total support for the budget, pointing out that the government of the acceptance of several recommendations of the parties, including the 20% increase in the funds for the Benazir Income Support Program (Bisp).
“حکوم Avor نے پاکستان پارٹی کی سفارشا سفارشا کو مان کر بجٹ شامل کیاس لیے ہم ہ x more بجٹ میں پاک پاک پیپلز پارٹی کی سفارشا سفارشا پر پر عمل کروے ہوئے بینظیر بینظیر انکم سپورٹ پروگرٹ پروگرٹ گ 20 فیصد ض ض ضافہ کیا جا جا ہے،ا ہے،ا ہے،ا ہے،ا pic.twitter.com/drhgsxgg1x
– PPP (@MediacellPP) June 26, 2025
He also highlighted the reduction of taxes in the solar panels and the alignment of the Government with the app proposals with respect to tax reforms.
With the final approval of the Finance Law 2025-26, the Total Federal Budget for the fiscal year has been established in RS17.57 billion.
The speaker Ayaz Sadiq concluded the session, which will resume at 11 am the next day.
