Pakistan Approves Rs17.57 Trillion Budget for FY 2025-26

Strategic Insights -

The National Assembly in Pakistan has approved the Rs17.57 trillion federal budget for the fiscal year 2025-26, amid opposition calls for public consultation. The Finance Bill 2025, sponsored by Finance Minister Mohammad Aurangzeb, was passed with certain amendments, paving the way for tax reforms, revenue measures, and government spending plans for the coming year. The bill introduced measures to tackle sales tax fraud, including penalties for issuing invoices without delivery of goods and tampering with tax records. A carbon levy of Rs2.50 per liter on petroleum products was also approved, alongside a 10% sales tax on solar panels. The bill granted tax exemptions to 107 institutions, including the Pakistan Bar Council and the Fauji Foundation.

Key Takeaways:

  • The National Assembly approved the Rs17.57 trillion federal budget for the fiscal year 2025-26, with certain amendments.
  • The Finance Bill 2025 introduced measures to tackle sales tax fraud, including penalties for issuing invoices without delivery of goods and tampering with tax records.
  • A carbon levy of Rs2.50 per liter on petroleum products was approved under clause 3 of the bill.
  • The bill imposed a 10% sales tax on solar panels to promote sustainable energy while generating government revenue.
  • The Finance Minister presented an amendment to the Income Tax Ordinance 2001, granting tax exemptions to 107 institutions.
  • The institutions granted exemptions include the Pakistan Bar Council, provincial bar councils, the Fauji Foundation, Army Welfare Trust, and Foundation University.
  • The opposition's amendments on the carbon levy and sales tax on solar panels were rejected.

Statistics:

  • The federal budget for the fiscal year 2025-26 is Rs17.57 trillion.
  • The carbon levy on petroleum products is Rs2.50 per liter.
  • The sales tax on solar panels is 10%.

Sources:

  • "National Assembly approves Rs17.57 trillion budget for FY 2025-26." [Pakistan Today](https://www.pakistantoday.com.pk/2025/05/27/national-assembly-approves-rs17-57-trillion-budget-for-fy-2025-26/)
  • "Finance Bill 2025: Key features and implications." [Dawn](https://www.dawn.com/news/featudget)