- NA adopted changes proposed by FinMin in clauses 5, 6, 6A.
- The opposition members’ 60 amendments rejected by majority vote.
- Budget predicts an economic growth rate of 4.0% for the financial year 2026-27.
President Asif Ali Zardari on Friday approved the Finance Bill, 2026, days after the federal budget for the next fiscal year sailed through the National Assembly.
The Finance Bill, 2026 was passed by the National Assembly on Tuesday, giving effect to the Federal Government’s financial proposals for the financial year commencing July 1, 2026.
The House had adopted amendments from the Minister of Finance in clauses 5, 6 and 6A, while it rejected the Senate’s recommendations in clause 6.
Opposition members from PTI and JUIF proposed more than 60 amendments in clauses 2, 3, 4, 5, 6 and 8, all of which were rejected by majority vote.
The budget projects an economic growth rate of 4.0% for the financial year 2026-27, with inflation expected to remain at 8.2%. The fiscal deficit has been estimated at 3.6% of GDP, while the primary surplus is projected at 2.0% of GDP.
The Federal Board of Revenue collection target is set at Rs15.264 trillion, reflecting an increase over the previous year. Net federal revenue is estimated at Rs11.752 trillion, while total expenditure is expected at Rs18.77 trillion. Of this, approximately Rs 8.05 trillion will be allocated for debt servicing and mark-up payments.
An amount of Rs1 trillion has been earmarked for the Federal Public Sector Development Programme, with the total national development program estimated at around Rs3.675 trillion.
The House approved Rs3 trillion in appropriations for defense services. Substantial funds are also allocated to pensions, civil administration, subsidies and social protection programs. Benazir’s income support program received Rs.838 billion, marking a significant increase from the previous year, to expand social security coverage and improve assistance to vulnerable households.
The budget proposes a 7% increase in government employees’ wages and a corresponding increase in pensions. Additional relief measures have also been announced for public sector employees and armed forces personnel. The government decided to provide relief to wage earners across four income slabs.
From July 1, 2026, imported vehicles with an engine capacity between 2,000 cc and 3,000 cc will have to pay 86 percent, while vehicles over 3,001 cc will be subject to 92 percent duty. Imported electric vehicles valued between $75,000 and $110,000 will incur a 30% duty, while those valued above $110,000 will be subject to a 40% duty. Electric vehicles valued at $75,000 or less will be exempt from duty.
A favorable sales tax of 10% will be applied to children’s pencils, pens and sharpeners. A one-time flat tax of Rs 10,000 will be levied in the federal jurisdiction on vehicles up to 1,000cc. Pre-2010 models of vehicles up to 1,000 cc will attract a token tax of Rs 20,000.
