On Thursday, the National Assembly approved RS17.57 trillion federal budget for the financial year 2025-26 with certain changes that rejected opposition calls for public consultation and clear the way for a number of tax reform, revenue measures and public spending for the coming year.
Finance proposal 2025 – with the aim of implementing the federal government’s financial proposal for the financial year from July 1, 2025 and amending various existing laws.
The session, led by speeches Ayaz Sadiq, began with Finance Minister Mohammad Aurangzeb, who moved Finance Bill 2025, which was taken up to a clause-for-clause review.
Opposition members proposed a change to delay the approval of the bill and seek public consultation, but this amendment was overwhelmingly rejected.
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Aurangzeb moved to introduce the financial proposal in the form recommended by the standing committee, despite opposition switches. One of the most important clauses approved during the session addressed VAT -fraud. The Bill introduced measures to arrest persons involved in tax fraud, including sanctions for issuing invoices without the delivery of goods or manipulation with tax registrations.
In addition, changes enabled to arrest individuals trying to destroy tax evidence or provide false information in tax returns.
Prime Minister Muhammad Shehbaz Sharif meets President Pakistan People’s Party Bilawal Bhutto Zardari during the budget of the National Assembly. pic.twitter.com/fznnwsfqov
– Pakistan’s government (@govtofpakistan) June 26, 2025
Another important provision in Finance Bill 2025 included a carbon tax of RS2.50 per year. Liters of petroleum products that were approved under clause 3. The opposition’s changes to this clause were also rejected. In addition, the bill introduced a VAT of 10% on solar panels to promote sustainable energy while the general income is generating.
The 1969 Customs Act was also amended to improve anti-smuggling efforts. The new regulations were mandated for installing load tracking systems for better monitoring of import, export and transit goods. Sanctions were introduced so as not to use the electronic billing system (e-Bill) for the domestic movement of goods, and serious fines and imprisonment were introduced for manipulation with tracking units.
The bill also introduced significant changes in the income tax system for paid persons. Employees who earned up to RS600,000 annually were exempt from tax, while new tax slabs were introduced for higher income groups.
In addition, Parliament approved amendments regarding parliamentarians’ wages and quotas. According to these changes, the decision of the parliamentarians’ salary would be handled by the House Committee rather than the Secretariat. Federal ministers and prime ministers would now receive the same salary as MPs.
In his statement after the budget approval, PPP chairman Bilawal Bhutto Zardari expressed full support for the budget and noted the government’s acceptance of several party admissions, including a 20% increase in funding for Benazir Income Support Program (BISP).
“حکمت †ے پانا below پیپ< پارٹی کی verse pic.twitter.com/drhgsxgg1x
– PPP (@mediacellppp) June 26, 2025
He also highlighted the reduction of taxes on solar panels and the government’s adaptation to PPP proposals for tax reform.
With the final approval of Finance Bill 2025-26, the total federal budget for the financial year is set for RS17.57 trillion.
Talking Ayaz Sadiq concluded the session that resumes at 1 p.m. 11 next day.
