Islamabad, June 26, 2025: The National Assembly on Thursday approved the federal budget for the fiscal year 2025-26, with a total outlay of Rs17.57 trillion, following extensive deliberations and the adoption of several amendments to the Finance Bill. The approval came amid strong protests and criticism from opposition benches.
Finance Minister Muhammad Aurangzeb presented the Finance Bill in the lower house, where it was passed by a majority vote with support from the ruling coalition, including the Pakistan Peoples Party (PPP). All amendments proposed by opposition lawmakers were rejected during the clause-by-clause reading and voting process.
For the first time in Pakistan’s parliamentary history, the National Assembly Standing Committee on Finance introduced changes to the revised Finance Bill during the legislative process, marking a procedural milestone.
Key amendments in the Finance Bill 2025-26:
- Vehicle Purchase Threshold: Individuals purchasing locally manufactured or imported vehicles with an invoice or assessed value exceeding Rs7 million (inclusive of taxes, duties, and levies) will be deemed “ineligible persons” unless they provide proof of financial standing through their most recent tax returns.
- Property Transfer Limit: A threshold of Rs100 million, based on fair market value, will apply to transactions involving registration or attestation of immovable property transfers.
- Investment in Securities: For investments in securities, mutual funds, or money market instruments, new investments exceeding Rs50 million will trigger eligibility checks. This threshold excludes reinvestments from the liquidation of similar securities or returns from previously held instruments.
Prime Minister Shehbaz Sharif lauded the efforts of Finance Minister Aurangzeb and the broader economic team for formulating what he described as a “responsible and inclusive” financial plan. He also thanked the federal cabinet and allied parties for their support in finalizing and passing the budget.
Earlier in the day, the federal cabinet approved the amended Finance Bill before its presentation in the National Assembly. According to sources, the cabinet also gave in-principle approval to various legal amendments and constituted a committee to handle a specific agenda item related to gas policy, with recommendations to be submitted to the Supreme Court as part of ongoing legal proceedings.
Speaking during the budget session, PPP Chairman Bilawal Bhutto Zardari welcomed the inclusion of his party’s proposals in the final budget. He praised the government’s decision to:
- Increase Benazir Income Support Programme (BISP) allocations by 20%, calling it a strong commitment to social protection;
- Raise the annual income tax exemption limit for salaried individuals from Rs600,000 to Rs1.2 million, offering major relief to the middle class;
- Reduce proposed taxes on solar panels by 50%, encouraging clean energy adoption;
- Curtail FBR’s arrest powers, restricting them to concluded inquiries specifically involving sales tax fraud.
Bilawal expressed gratitude to PM Shehbaz Sharif and Finance Minister Aurangzeb for accepting the majority of PPP’s recommendations, saying, “Our commitment is to ensure every budgetary decision serves the national interest and prioritizes the welfare of ordinary citizens.”
The passage of the FY2025-26 budget marks a critical step in Pakistan’s economic roadmap as the government navigates fiscal challenges and prepares for potential new arrangements with international financial institutions.
