The Finance Act 2025, which details the budget for the next fiscal year with an expenditure of Rs17.57 trillion, was approved by President Asif Ali Zardari on Monday.
According to a June 29 gazette notice that Dawn.com has access to, the president’s assent to the Finance Act 2025, which was adopted by the National Assembly, was granted on June 27. According to the information ministry, the act will take effect on July 1.
In a heated National Assembly session on June 10, Finance Minister Muhammad Aurangzeb presented Pakistan’s annual federal budget, laying out bold plans to boost economic growth by 4.2% in the upcoming fiscal year while reducing overall spending and tightening tax laws.
Even though the opposition demanded that the budgetary recommendations be made public and that the approval be postponed until after public input had been obtained, the National Assembly approved the federal budget for the next fiscal year on June 26 with an expenditure of Rs17.57 trillion.
About half of the recommendations made by the finance committees of both chambers of parliament were incorporated into the modifications that the House passed. Every amendment that the opposition put forth was turned down.
Budget for 2025–2026
According to the federal budget for the upcoming fiscal year, inflation will be 7.5 percent and economic growth will be 4.2 percent. FBR collections are expected to increase by 18.7% to Rs14.13 trillion, while net revenue receipts are forecast to be Rs11.07 trillion. The expected amount of non-tax receipts is Rs 5.15 trillion.
Important allotments include Rs1.19 trillion for energy and other sector subsidies, Rs2.55 trillion for defense, and Rs1.06 trillion for pension expenses. The budget’s relief measures include a ten percent pay raise, a seven percent pension boost, and tax breaks for all income levels of the salaried class.
Additionally, the budget contains Rs716 billion for the BISP and Rs1 trillion for the Public Sector Development Programme (PSDP), of which Rs328 billion is mostly allocated to transportation infrastructure projects.
