Islamabad: Finance Minister Muhammad Aurangzeb has described the budget for the next financial year as balanced, emphasizing measures have been taken to pave the way for inclusive and sustainable economic growth. Winding up the discussion on the Federal Budget 2025-26 in the National Assembly, he highlighted the revisions made to the budgetary proposals.
According to Radio Pakistan, the Finance Minister stated the government is aware of the tax burden on the salaried class. He announced a decision to impose a one percent tax on individuals earning between six hundred thousand rupees and 1.2 million rupees, and a reduction in sales tax on imported solar panels from eighteen percent to ten percent. He also mentioned that the powers of the Federal Board of Revenue (FBR) have been reviewed to avoid misuse, stating that the FBR cannot arrest a person in cases involving up to fifty million rupees without a judicial warrant.
Muhammad Aurangzeb presented three new measures aimed at addressing the revenue shortfall, stating the focus is on ensuring that only the affluent class falls within their scope. A federal excise duty of ten rupees has been imposed on one-day-old chicken, and rates have been increased on companies’ investments in mutual funds and earnings from investment in government securities.
The Finance Minister emphasized that while managing government expenditures, the focus remains on increasing revenues by broadening the tax base and enhancing tax compliance. He informed the House about the promotion of digitalization and the introduction of new laws to ensure better tax compliance.
Aurangzeb highlighted that the government has reduced the tax burden on the salaried class and facilitated the construction industry. He stated that reduction in import duties will lower the cost of inputs for industries, helping to bolster exports. These steps are also expected to curb smuggling, promote industries, and enhance government revenues.
He mentioned that the budget for the Benazir Income Support Program has been increased from 592 billion rupees to 716 billion rupees. The government is set to introduce Pakistan’s first Skills Impact Bond to align the youth with market-oriented skills. Furthermore, a flagship program has been prepared to provide loans to small farmers without any guarantee, allowing loans up to one million rupees to be provided digitally to farmers with up to 12.5 acres of land.
The Finance Minister noted that farmers will also receive crop and life insurance facilities, along with the development of an electronic warehouse receipt mechanism to ensure better pricing for their produce. Additionally, a house financing scheme is being introduced for low-income groups to own a house, and loans worth fourteen billion rupees were provided to one hundred and ninety-three thousand women under the women inclusive finance program, with another fourteen billion rupees to be provided next year.
Later, the House held a discussion on the recommendations forwarded by the Senate on the budget for the next fiscal year.