Islamabad: The federal budget for the fiscal year 2025–26 will be presented today at 5 PM in the National Assembly, with key economic measures expected, including an increase in salaries and pensions for government employees.
The budget session will be chaired by Speaker Sardar Ayaz Sadiq and will commence with recitation from the Holy Quran, Hadith, a Naat, and the national anthem. Following this, Federal Finance Minister Muhammad Aurangzeb will present the budget with the Speaker’s permission. He will also lay before the House the Finance Bill 2025 along with other relevant documents.
According to sources, the total volume of this year’s budget is estimated at Rs 17.6 trillion, while overall revenue is expected to reach Rs 19.4 trillion. The tax collection target is likely to be set at Rs 14.13 trillion, including Rs 6.47 trillion from direct taxes and Rs 1.153 trillion from federal excise duty.
Four proposals are under consideration for salary increases. These include a 30% disparity allowance for employees from Grade 1 to 16, and a 10% raise in salaries and pensions to account for inflation. One of the two previous ad-hoc allowances may be merged into the basic salary. For employees in Grades 17 to 22, a 15% increase has been proposed. The armed forces are also likely to be exempted from the contributory pension scheme. Final decisions on these proposals will be made by the federal cabinet prior to the budget presentation.
In support of industrial growth, duties are expected to be reduced on over 7,000 tariff lines. For overseas Pakistanis, proposals include eliminating federal excise duty on property and removing the requirement for an NOC.
Major reforms are also anticipated in the real estate sector. From July 1, federal excise duty on property purchases may be withdrawn, and changes have been proposed for FED applicable to late filers and non-filers. This is expected to boost the construction sector and increase tax revenue.
Additionally, proposals include adjustments to withholding tax on property transactions and plans to make registration mandatory for builders and developers starting July 1.
