Pakistan Budget 2024: Finance Bill Approved | Rs17.57tr
Pakistan’s parliament greenlit the Finance Bill 2025, solidifying a Rs17.57 trillion budget.initially, the PPP voiced reservations, but amendments, influenced by their proposals, garnered their support. Discover the key changes: including increased funding for the Benazir Income Support Program,income tax exemptions for specific earners,and solar tax reductions. New sales tax amendments empower the finance committee to act against tax fraud. Moreover,107 institutions gained tax-exempt status. Bilawal Bhutto Zardari,acknowledged the collaborative role in shaping the budget. News Directory 3 delivers incisive coverage of Pakistan’s economic landscape. The government now aims for 4.2% growth and enhanced revenue. Discover what’s next for pakistan’s financial trajectory.
Pakistan Parliament Approves Finance Bill 2025, Budget Secured
Updated June 26, 2025
Pakistan’s parliament on Thursday approved the Finance Bill 2025, clearing the way for a Rs17.57 trillion budget in the upcoming fiscal year. The approval followed debates and amendments, notably concerning tax regulations and revenue collection role.
The Pakistan Peoples Party (PPP) initially expressed concerns about certain provisions within the budget. However, PPP Chairman Bilawal Bhutto Zardari told the House his party would “happily support the budget” after the government accepted their proposals. These included increasing the Benazir Income Support Program (BISP) budget, exempting salaried individuals earning up to Rs1.2 million annually from income tax, and reducing the solar tax by 50 percent. The PPP also saw its recommendations regarding the Federal Board of Revenue (FBR) accepted.
Amendments to the Sales Tax Act of 1990, presented by Finance Minister Muhammad Aurangzeb, also passed. These amendments empower the finance committee to arrest traders involved in tax fraud exceeding Rs50 million. The approved changes stipulate that the FBR will not have arrest powers during the investigation phase. all opposition amendments to the Sales Tax Act were rejected.
An amendment to the Salaries and Allowances Act, also supported by Aurangzeb, ensures that ministers and ministers of state receive the same salary as members of parliament. This amendment also received majority approval.
Tax Exemptions Granted
One hundred and seven institutions, including provincial and national bar councils, hospitals such as Shaukat Khanum Memorial Hospital and Al-Shifa Trust Eye Hospital, educational institutions like LUMS and Forman Christian College, and organizations such as the Edhi Foundation, were granted tax-exempt status thru amendments to the Income Tax Ordinance, 2001. Pensions for former presidents and their widows will also be tax-exempt.
“We are grateful to the government and the prime minister for accepting our proposals,” Bilawal said, acknowledging the collaborative role in shaping the budget.
What’s next
With the budget approved,the government aims to focus on achieving a 4.2 percent economic growth rate in the coming fiscal year, while also reducing overall spending and enhancing tax measures to improve the role of revenue collection.