ISLAMABAD: The federal government has announced the budget for 2025-26 with a total outlay of Rs17.573 trillion, focusing on policies designed to support inclusive and sustainable economic growth.
Finance and Revenue Minister Muhammad Aurangzeb presented the budget proposals in the National Assembly on Tuesday evening.
He said the new budget marks the start of a broader plan aimed at developing a competitive economy.
According to him, this approach will help improve exports and foreign exchange reserves, reduce payment imbalances, and boost overall economic productivity.
The finance minister added that the government is aiming for fundamental changes in the country’s economic structure.
He also shared that net revenue receipts for the next fiscal year are expected to be Rs11,072 billion.
The Federal Board of Revenue is projected to collect Rs14,131 billion, an 18.7 per cent rise compared to the current year. Non-tax revenue is estimated at Rs5,147 billion.
He further noted that provinces will receive Rs8,206 billion as their share from federal receipts.
Read more: Foreign investors group criticises Pakistan’s budget for missing tax reforms
Budget 2025-26 key takeaways
Here are the key highlights from the federal budget for FY26:
Total spending fixed at Rs17.573 trillion, 7 per cent lower than last year
Growth goal set at 4.2 per cent; fiscal deficit capped at 3.9 per cent of GDP
FBR tax-to-GDP ratio raised to 10.4 per cent, with a 1.6 per cent yearly rise
New tax slabs for salaried class; 2.5 per cent for incomes between Rs0.6m–Rs1.2m
IT exports reached $3.1 billion; aim set at $25 billion in 5 years
Rs1,186 billion reserved for subsidies, including electricity
Scholarship scheme to cover 12 million children
Rs8,210 billion set aside for debt servicing: nearly half the budget
Defence allocation raised by 20.2 per cent to Rs2,550 billion (1.97 per cent of GDP)
The tax target increased to Rs14.131 trillion, up by 18.7 per cent
Super tax cut to 5 per cent for firms earning Rs200m–Rs500m
18 per cent tax proposed on imported solar panels, digital services, and fuel-based vehicles
Federal development funds cut by 20 per cent to Rs1.354 trillion; provinces get 36.9 per cent more at Rs2.869 trillion
Non-tax revenue estimated at Rs5.15 trillion
Pensions were raised by 7 per cent; salaries increased by 10 per cent for Grade 1-22 employees
