- NA adopted the amendments proposed by FinMin in Clauses 5, 6, 6A.
- All 60 amendments by opposition members were rejected by a majority vote.
- The budget projects an economic growth rate of 4.0% for fiscal year 2026-27.
President Asif Ali Zardari on Friday approved the 2026 Finance Bill, days after the federal budget for the next fiscal year passed the National Assembly.
The Finance Bill 2026 was passed by the National Assembly on Tuesday, giving effect to the federal government’s financial proposals for the fiscal year beginning July 1, 2026.
The House had adopted amendments proposed by the Finance Minister in Clauses 5, 6 and 6A, while rejecting the Senate’s recommendations in Clause 6.
Opposition members of the PTI and JUIF proposed more than 60 amendments in Clauses 2, 3, 4, 5, 6 and 8, all of which were rejected by a majority vote.
The budget projects an economic growth rate of 4.0% for fiscal year 2026-27, with inflation expected to remain at 8.2%. The fiscal deficit has been estimated at 3.6% of GDP, while the primary surplus is projected at 2.0% of GDP.
The collection target of the Federal Board of Revenue has been set at Rs 15.264 trillion, reflecting an increase from the previous year. Net federal revenue is estimated at Rp11.752 trillion, while total expenditures are projected at Rp18.77 trillion. Of this amount, approximately Rs 8.05 trillion will be allocated for debt service and margin payments.
An amount of Rs 1 trillion has been allocated to the Federal Public Sector Development Programme, while the overall national development program is estimated at around Rs 3,675 trillion.
The House approved allocations of Rs 3 trillion for defense services. Substantial funds have also been set aside for pensions, civil administration, subsidies and social protection programs. The Benazir Income Support Program received Rs 838 billion, a significant increase from the previous year to expand social protection coverage and improve assistance to vulnerable households.
The budget proposes a 7% increase in public employee salaries and a similar increase in pensions. Additional relief measures have also been announced for public sector employees and armed forces personnel. The government decided to provide help to salaried people at four income levels.
Starting July 1, 2026, imported vehicles with an engine capacity between 2,000 cc and 3,000 cc will face a tariff of 86 percent, while vehicles larger than 3,001 cc will be subject to a tariff of 92 percent. Imported electric vehicles valued between $75,000 and $110,000 will be subject to a 30% customs duty, while those valued above $110,000 will face a 40% customs duty. Electric vehicles valued at $75,000 or less will be exempt from customs duties.
A 10 percent concessional sales tax will be imposed on children’s pencils, pens and sharpeners. In the federal jurisdiction, a flat flat tax of Rs 10,000 will be levied on vehicles up to 1,000 cc. Pre-2010 vehicle models up to 1,000 cc will be subject to a token tax of Rs 20,000.
