21 hours ago
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- Business Recorder
National Assembly passes Rs17.57trn federal budget for FY2025-26
The National Assembly (NA) passed on Thursday the federal budget for the next fiscal year (2025-26), with a total outlay of Rs17.573 trillion, focusing on sustainable and inclusive economic growth, state-run Radio Pakistan reported.
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 July 1, 2025.
Key highlights of Pakistan budget for 2025-26
The budget projects an economic growth rate of 4.2% and an inflation rate of 7.5% for the next financial year.
The net revenue receipts is estimated at Rs11.072 trillion. The Federal Board of Revenue (FBR) collections are estimated to be Rs14.131 trillion, 18.7% higher than the outgoing fiscal year (2024-25). Non-tax revenues will be Rs5.147 trillion.
As per the details, Rs2.550 trillion have been earmarked for defense, Rs1.055 trillion for the pension expenditures and Rs1.186 trillion for subsidy on electricity and other sectors.
The main relief features include 10% increase in salaries, 7% in pensions and tax relief for the salaried class across all slabs.
Moreover, Rs716 billion have been allocated for Benazir Income Support Programme.
The government has allocated Rs1 trillion for the Public Sector Development Programme (PSDP). The biggest amount of Rs328 billion has been earmarked for transport infrastructure projects.
The PSDP portfolio for next fiscal year has been aligned with the objectives of URAAN Pakistan, while priority has been attached to high impact, near completion, foreign funded projects and new initiatives of national importance, according to Radio Pakistan.
It reported that Rs32.7 billion have been earmarked for Diamer Bhasha, Rs35.7 billion for Mohmand Dam, Rs3.2 billion for K-IV, Rs10 billion for lining of Kalri Baghar Feeder and Rs4.4 billion for installation of telemetry system on Indus Basin System.
The Higher Education Commission will be given Rs39.5 billion for one hundred and seventy projects, and Rs18.5 billion have been set aside in the PSDP for various education projects.
Around Rs4 billion have been allocated for ten ongoing and five new schemes in the agriculture sector.
The budget encapsulates incentives for the construction industry, which include reduction in withholding tax on purchase of property, Radio Pakistan reported.
The House will now meet tomorrow at eleven in the morning.
