The True Post(Web News) The National Assembly session is underway under the chairmanship of Speaker Sardar Ayaz Sadiq to approve the federal budget of more than Rs 17.5 trillion for the upcoming fiscal year 2026-27 by the federal government.
At the beginning of the session, Pakistan Tehreek-e-Insaf members raised slogans, while independent members raised placards and recorded their protest.
Increase in salaries and pensions
The federal cabinet has approved a 7 percent increase in salaries and 7 percent in pensions for government employees. A proposal for a 10 percent increase in minimum monthly salary has also been presented to reduce the effects of inflation.
Defense Development and International Relations
The Finance Minister said in his budget speech that Pakistan’s defense capability is being recognized worldwide and many countries are interested in inducting our manufactured warplanes into their forces. The defense cooperation agreement between Pakistan and Saudi Arabia was also mentioned and the relationship was described as important.
Super tax abolished
The government has decided to completely abolish super tax for six sectors. The super tax of 1 to 7 percent was imposed on people with an annual income of Rs 150 million to Rs 500 million, which will now be abolished.
Property Tax Reduction:
The government has reduced the tax rate on property sales from 5.5 percent to 2.75 percent in the next fiscal year. The move will boost construction activities and support 40 industries including cement, iron, glass, timber, paints, tiles and hardware.
Withholding tax on online purchases reduced:
Withholding tax on online purchases from abroad has been reduced from 5 percent to zero percent. Advance income tax on exports has been reduced from 2 percent to 1.25 percent.
Tax on women’s sanitary pads eliminated
The government has announced the elimination of taxes on sanitary pads and related items for women in order to provide relief to women.
are being completely abolished to control population growth.
Federal excise duty on vehicles:
Federal excise duty is being imposed on SUVs of 2,000 to 3,000 cc and luxury electric vehicles costing more than Rs. 20 million, while the duty is being increased on vehicles larger than 3,000 cc.
A proposal has been made to eliminate federal excise duty on foreign business class travel.
Capital Value Tax on Foreign Assets Abolished
Capital Value Tax on foreign assets is being abolished so that Pakistanis can bring their foreign financial assets on record.
is Rs2,680 billion, including Rs838 billion for flagship initiatives, Rs88 billion for the Export Refinance Scheme, and Rs3,674 billion for the National Development Program.
The funds allocated for the development program are
Rs1,000 billion for the federal development program, Rs2,224 billion for the provincial development program, and Rs451 billion for investment in government institutions. More than 60 percent of the funds are focused on infrastructure such as transport, energy, and water resources.
The allocation for energy and water projects is
Rs 116.2 billion for power projects, Rs 10.2 billion for renewable energy projects and Rs 50.2 billion for solar and wind power. Rs 13.1 billion has been allocated for 8 hydel power projects in Azad Jammu and Kashmir and Gilgit-Baltistan and Rs 103.1 billion for water projects.
Urban Development and Industrial Development
Rs54.6 billion has been allocated for urban development and housing, Rs6.6 billion for industrial development and export competitiveness, Rs25.1 billion for health projects and Rs46 billion for higher education. For the promotion of education, Pakistan Education and Research Network Rs3.6 billion, Danish Schools Rs22 billion and Youth Skills Development Program Rs7.9 billion have been allocated.
Allocation for Sports Infrastructure
Rs 1.851 billion has been allocated for sports infrastructure. Rs 250 million has been allocated for Arshad Nadeem and Shahbaz Sharif High Performance Sports Academy at Pakistan Sports Complex, Rs 150 million for coaching center in Skardu and Rs 120 million for installation of hockey turf in various cities. Rs 70.488 million has been allocated for biomechanical lab.
SIFC Projects and Economic Zones
Under SIFC, local and international investment projects have expanded in 12 sectors. A Special Economic Zone has been established in Islamabad on 6,860 acres. Strengthening the refinery and warehousing sector will increase production and exports.
