President Asif Ali Zardari on Friday assented to the Finance Bill, 2026, days after the federal budget for the next fiscal year sailed through the National Assembly.
The Finance Bill, 2026, was passed by the National Assembly on Tuesday, giving effect to the federal government’s financial proposals for the fiscal year commencing July 1, 2026.
The House had adopted amendments moved by the finance minister in Clauses 5, 6, and 6A, while rejecting the Senate’s recommendations in Clause 6.
Opposition members from the PTI and JUIF proposed over 60 amendments in Clauses 2, 3, 4, 5, 6, and 8, all of which were rejected by a majority voice vote.
The budget projects an economic growth rate of 4.0% for the fiscal year 2026-27, with inflation expected to remain at 8.2%. The fiscal deficit has been estimated at 3.6% of GDP, while the primary surplus is projected at 2.0% of GDP.
The Federal Board of Revenue collection target has been set at Rs15.264 trillion, reflecting an increase over the previous year. Net federal revenues are estimated at Rs11.752 trillion, while total expenditures are projected at Rs18.77 trillion. Of this, approximately Rs8.05 trillion will be allocated to debt servicing and markup payments.
An amount of Rs1 trillion has been earmarked for the Federal Public Sector Development Programme, with the overall national development programme estimated at around Rs3.675 trillion.
The House approved Rs3 trillion in allocations for defence services. Substantial funds have also been set aside for pensions, civil administration, subsidies, and social protection programmes. The Benazir Income Support Programme received Rs838 billion, marking a significant increase from the previous year to expand social protection coverage and enhance assistance to vulnerable households.
The budget proposes a 7% increase in government employees’ salaries and a similar hike in pensions. Additional relief measures have also been announced for public sector employees and armed forces personnel. The government decided to provide relief to salaried individuals across four income slabs.
From July 1, 2026, imported vehicles with engine capacity between 2,000cc and 3,000cc will face 86 percent duty, while vehicles above 3,001cc will be subject to 92% duty. Imported electric vehicles valued between $75,000 and $110,000 will attract 30% Customs duty, while those valued above $110,000 will face 40% Customs duty. Electric vehicles valued at $75,000 or less will be exempt from Customs duty.
A concessional sales tax of 10% will be imposed on children’s pencils, pens, and sharpeners. A one-time fixed tax of Rs 10,000 will be levied in the federal jurisdiction on vehicles up to 1,000cc. Pre-2010 models of vehicles up to 1,000cc will attract a token tax of Rs 20,000.
