Pakistan’s Budget for Fiscal Year 2025-26 to be Presented in National Assembly Today

The federal budget for the fiscal year 2025-26, amounting to approximately **18 trillion PKR**, will be presented in the National Assembly today. This budget will introduce nearly **2 trillion PKR** in new taxes, marking a significant shift in the country’s fiscal policies. The expected **budget deficit** for the upcoming year is projected to be **5% of GDP**, amounting to **6,501 billion PKR**.

### **Key Proposals in the Budget:**

* **Non-Developmental Expenditure:** **16,286 billion PKR**
* **Debt Servicing (Interest on Loans):** **8,207 billion PKR**
* **Defense Spending:** **2,550 billion PKR**
* **Petroleum Levy:** The levy on petroleum products is expected to be increased from **78 PKR** per liter to **100 PKR** per liter, with an expected revenue of **1,300 billion PKR**.
* **Development Budget:** The **federal development budget** is proposed at **1,000 billion PKR**, which will include major infrastructure projects such as the **N-5 Highway** costing **120 billion PKR**.
* **Carbon Levy:** A **2.5% carbon levy** may also be introduced.

### **Revenue Targets and Tax Measures:**

* **Tax Revenue Target:** **14,131 billion PKR**
* **Non-Tax Revenue Target:** **5,167 billion PKR**
* **Total Revenue Target (Tax + Non-Tax):** **19,298 billion PKR**
* **GST on Non-Filers:** The **General Sales Tax (GST)** for non-filers is expected to rise from **18% to 20%**.
* **Retailers:** The government plans to tighten tax collection from retailers.
* **Petroleum Product Purchases:** If petroleum products are purchased through digital payments, no extra charges will apply, but cash purchases will incur an additional **2 PKR** per liter.

### **Welfare and Employment:**

* **Employee Salaries:** A **10% increase** in government employee salaries is proposed.
* **Salary Tax Reduction:** A **2.5% tax reduction** across all salary slabs is suggested.
* **Disparity Allowance:** Government employees in grades **1-16** may receive a **30% disparity allowance**.
* **Pensioners:** A **10% increase** in pensions is being proposed, with **1,055 billion PKR** allocated for pension payments.
* **Subsidies:** The government has proposed **1,186 billion PKR** for subsidies.

### **Additional Tax Proposals:**

* **YouTubers and Freelancers:** New tax measures are expected to target **YouTubers**, **freelancers**, and **non-filers**.
* **Bank Withdrawals:** A new tax of **1.2%** is proposed for cash withdrawals exceeding **50,000 PKR** by non-filers.

### **Provincial Transfers:**

* **Transfers to Provinces:** An estimated **8,206 billion PKR** will be transferred to provincial governments, with the **provincial development budget** pegged at **3,300 billion PKR**.

### **Upcoming National Assembly Session:**

The **National Assembly budget session** will be chaired by **Speaker Ayaz Sadiq** at **5:00 PM** today. The **four-point agenda** for the session includes:

1. Recitation of the Holy Quran
2. Hadith and Naat (Praise of the Prophet)
3. National Anthem
4. Presentation of the **Federal Budget** by **Finance Minister Muhammad Aurangzeb**

The Finance Minister will also present the **Financial Bill 2025** and other related documents, after which discussions on the proposed budget will begin.

This budget is designed to address Pakistan’s growing fiscal challenges while focusing on essential areas such as defense, development, subsidies, and welfare. The government aims to increase revenue and implement various tax measures to stabilize the economy while managing public spending and external debt obligations.