Islamabad, June 30, 2025: The President of Pakistan has formally signed the Finance Bill 2025–26, completing the constitutional process for enacting the federal budget for the upcoming fiscal year. With this approval, the new budgetary measures will come into effect at midnight, marking the beginning of the new fiscal year on July 1, 2025.
The Finance Bill 2025–26, passed by Parliament earlier this month, outlines a comprehensive set of economic reforms aimed at broadening the tax base, reducing the fiscal deficit, and securing further IMF support. It introduces new taxation measures, including changes in income tax slabs, increased petroleum levies, and a revised structure for the sales tax regime. At the same time, the bill includes significant tax exemptions for various state institutions, charitable organisations, and public sector enterprises.
Officials confirmed that with the President’s assent, all proposed fiscal and revenue policies, including tax hikes and exemptions, will now be implemented nationwide. The Federal Board of Revenue (FBR) is expected to issue detailed notifications for the operationalization of the new measures in the coming days.
