Islamabad : Amidst uproar of the Pakistan Tehreek e Insaf (PTI) , the Shahbaz government unveiled the federal budget having total layout of Rs 17.573 trillion. The Federal Board of Revenue (FBR) has been tasked to collect Rs 14.131 trillion revenue in next fiscal.
The government has announced more restrictions on non-filers like ban on them to buy any immoveable assets, cars and other moveable assets. The budget for FY 26 also brings more tax on bank transactions as the public will pay 1 % tax on withdrawal of money from the banks.The govt allocated funds for water reservoirs. The import of solar panel to pay tax by 18 %.
Finance minister , Mohammad Aurangzeb , presented the federal budget in the afternoon session of the national assembly chaired by speaker , Sardar Ayaz Sadiq.
PTI of Imran Khan remained up in the arms during the budget session. It’s members chanted full -throttle anti govt slogans to protest against the treasury benches for jailing their leader. Imran Khan is in jail for facing corruption cases. PTI is struggling for release of its founding leader.
Earlier , the federal cabinet meeting with prime minister , Shahbaz Sharif , in the chair approved the budget for 2025-26.
The budget set a target of 4.2 Percent growth target for 2025-26. This is an ambitious target as Pakistan could only get 2.68 % growth in the outgoing fiscal . There seems no magic which will help the government get 4.2 % growth in next fiscal year. The federal budget 2025-26 earmarked deficit of over Rs 6 trillion and it indicates that the government will heavily depend on loans from domestic and local resources!in next fiscal year. This strategy of living on loans is already bitting Pakistan as it is required to pay 8205 billion in interest on loans. Pakistan owes $ 131 to global lending institutions and foreign countries . It eats up around 80 % of Pakistan’s total annual income projected for next fiscal .
The budget speech of the Finance minister indicated that Pakistan will spend Rs 2550 billion on defence with 20 % increase over the last year. The budget also shows the government is presuming a conscious approach to cut down its expense . The Finance minister announced to either merge or delete 43 federal governments departments to get rid of unnecessary expense.
The budget carries 10 % increase in salary across the board of the federal employees and 7 % increase in pension of the retired federal employees. The government will charge 5 tax on the pension of those employees who get over Rs 10 million in a year in pension. The federal budget for FY 26 also impose carbon tax @ Rs 2.50 per litre on petroleum products . The Petroleum Levy has been increased up to Rs 100 per litre for FY 26. The government will earn over Rs 1000 billion from PDL and Corban Tax on Petroleum products in FY 26.
Mian Munir added from the parliament : Federal Minister said in budget speech that the budget for fiscal year 2025-26 was historic in a sense that it was being presented at a time when the nation had demonstrated unusual unity, resolve and determination in face of recent Indian aggression.
Delivering budget speech in the National Assembly, Muhammad Aurangzeb said Pakistan’s political leadership, Armed Forces and its brave people showed unprecedented courage, sagacity and unity which will always be remembered.
This victory was not only a great military milestone but also reflection of nation’s collective conscience and national dignity.
The minister congratulated the nation’s military and political leadership over this landmark achievement.
He said that Pakistan’s Armed Forces always foiled enemy’s nefarious designs through professional competence, valour and spirit of sacrifice, which not only made country’s defense impregnable but also increased Pakistan’s stature at global level.
This great achievement has given the clear message that Pakistani nation stood united like a rock for the defense of the motherland, in face of any foreign threat.
