Pakistan to Unveil Rs17.8tr Budget with Key Reforms Today
Pakistan to unveil Rs17.8tr budget for 2025-26 today, marking a critical step in the country’s economic planning. Finance Minister Muhammad Aurangzeb will present the budget in the National Assembly, highlighting significant policy changes.
Following this, he will submit the Finance Bill 2025 to the Senate, which outlines the Annual Budget Statement. This move signals the government’s intent to push through broad reforms swiftly.
For salaried individuals, the budget brings some relief. Government employees are expected to see a 10% pay raise. Additionally, retired civil servants may receive pension increases between 5% and 7.5%.
Moreover, employees in Grades 1 to 16 will receive a 30% special allowance. This amount will merge into their basic salary, permanently replacing temporary ad hoc relief.
Pakistan to unveil Rs17.8tr budget as it attempts to increase revenue and strengthen economic resilience. To achieve this, the government is focusing on reducing tax evasion and expanding the tax net.
As part of its commitments to the IMF, the government plans to introduce a tax on agricultural income. It also seeks to tax digital earnings, especially income generated through freelancing and international platforms.
Furthermore, the budget proposes an increase in capital gains tax (CGT) on property and shares. Taxes on fertilisers, insecticides, and sweets may rise, while levies on soft drinks and cigarettes could fall.
The government might also remove tax exemptions previously granted to the former FATA region. A standard 12% tax rate could be implemented to ensure fair contribution across all regions.
To explore more on global fiscal strategies, visit the OECD Tax Policy Center.
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