Islamabad: The National Assembly has passed the federal budget for the next fiscal year, with a total outlay of 17,573 billion rupees, focusing on sustainable and inclusive economic growth. A motion to this effect was moved by Minister for Finance Muhammad Aurangzeb. The House passed the Finance Bill, 2025 with certain amendments, giving effect to the financial proposals of the federal government for the year beginning on the 1st July 2025.
According to Radio Pakistan, the budget projects an economic growth rate of 4.2 percent and an inflation rate of 7.5 percent for the next financial year. The net revenue receipts have been estimated at 11,072 billion rupees. The Federal Board of Revenue (FBR) collections are estimated to be 14,131 billion rupees, which is 18.7 percent higher than the outgoing fiscal year. Non-tax revenues will be 5,147 billion rupees.
In terms of allocations, 2,550 billion rupees have been earmarked for defense, 1,055 billion rupees for pension expenditures, and 1,186 billion rupees for subsidies on electricity and other sectors. The main relief features include a ten percent increase in salaries, a seven percent increase in pensions, and tax relief for the salaried class across all slabs.
A total of 716 billion rupees have been allocated for the Benazir Income Support Program. One trillion rupees have been allocated for the Public Sector Development Programme (PSDP), with the largest amount of 328 billion rupees designated for transport infrastructure projects. The PSDP portfolio for the next fiscal year has been aligned with the objectives of URAAN Pakistan, prioritizing high-impact, near-completion, foreign-funded projects and new initiatives of national importance. Specific allocations include 32.7 billion rupees for Diamer Bhasha, 35.7 billion for Mohmand Dam, 3.2 billion rupees for K-IV, ten billion rupees for the lining of Kalri Baghar Feeder, and 4.4 billion rupees for the installation of a telemetry system on the Indus Basin System.
The Higher Education Commission will receive 39.5 billion rupees for 170 projects, with an additional 18.5 billion rupees set aside in the PSDP for various education projects. Four billion rupees have been allocated for ten ongoing and five new schemes in the agriculture sector. Moreover, the budget includes incentives for the construction industry, such as a reduction in withholding tax on property purchases.
The House is scheduled to reconvene tomorrow at eleven in the morning.