The National Assembly approved the federal budget for the fiscal year 2025-26, passing the Finance Bill 2025 with a majority vote after clause-by-clause scrutiny and voting. The budget, with a total volume exceeding Rs17.57 trillion, was presented by Finance Minister Muhammad Aurangzeb and received backing from the ruling coalition, including the Pakistan Peoples Party (PPP).
All proposed amendments and cut motions by opposition members were rejected during the proceedings. The PPP extended its support after the government addressed its key concerns — notably reducing the tax on solar panels to 10% and increasing the Benazir Income Support Programme (BISP) allocation by 20%.
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The government also introduced income tax relief measures for the salaried class. Individuals earning up to Rs600,000 annually will be completely exempt from income tax. Those earning between Rs600,001 and Rs1.2 million will be taxed at 1% on the excess amount. Additional income slabs outline progressively higher tax rates, with the highest slab (above Rs4.1 million annually) subject to a fixed tax of Rs616,000 plus 35% on the surplus amount.
Total revenue for the upcoming fiscal year is projected at Rs19.4 trillion, aiming to balance the increased expenditure while accommodating relief measures and political compromises that helped secure the budget’s approval.
