The National Assembly has officially passed the Finance Bill 2025, approving a federal budget of Rs17.573 trillion for the fiscal year 2025–26. Presented by Finance Minister Senator Muhammad Aurangzeb, the budget outlines the government’s economic direction, focusing on fiscal discipline, development spending, and relief for low- and middle-income groups. All opposition amendments were rejected, while the Pakistan Peoples Party supported the bill after the government accommodated key recommendations, including increased funding for the Benazir Income Support Programme (BISP) and tax relief for salaried individuals.
The budget sets a GDP growth target of 4.2%, inflation at 7.5%, and a fiscal deficit of 3.9% of GDP. The Federal Board of Revenue has been assigned a revenue target of Rs14,131 billion, an 18.7% increase from the previous year. Major spending includes Rs2,550 billion for defence, Rs8,207 billion for interest payments, and Rs1,928 billion for social protection programs. The Public Sector Development Programme (PSDP) will receive Rs1,000 billion, while development spending across federal and provincial levels exceeds Rs4,000 billion.
Notable relief measures include a 10% salary increase for public sector employees (Grades 1–22), a 7% pension hike, and significant tax cuts for individuals earning up to Rs1.2 million annually. BISP’s budget has been raised by 21% to Rs716 billion, expanding coverage to 10 million families. Export-oriented sectors have been spared from new taxes, while targeted reforms have been introduced for high-income earners and large businesses. The government also announced upcoming policies for industrial growth, electric vehicle development, and long-term energy reforms, signaling a strategic push for sustainable economic progress.
