Islamabad, June 26, 2025 — In a significant fiscal development, the National Assembly on Thursday approved the much-anticipated Budget 2025-26, with a total outlay of Rs17.57 trillion. The federal budget, which takes effect from July 1, was passed after intense deliberations and a clause-by-clause reading in the lower house of Parliament.
Presented by Finance Minister Muhammad Aurangzeb two weeks ago, the budget was backed overwhelmingly by the ruling coalition, including key support from the Pakistan Peoples Party (PPP). The finance bill was passed following a series of parliamentary procedures, including voting on proposed amendments. Notably, all amendments tabled by opposition members were rejected.
For the first time in Pakistan’s legislative history, the National Assembly’s Standing Committee on Finance played a direct role in altering the revised Finance Bill during its passage through the house. This marks a major shift in parliamentary engagement, enhancing transparency and giving greater weight to committee recommendations.
The revised Budget 2025-26 introduces major reforms in tax compliance and eligibility criteria for high-value transactions. A new Rs7 million threshold has been implemented for vehicle purchases—if the invoice price or import value exceeds this amount (inclusive of duties, taxes, and levies), buyers will be classified as “ineligible persons.” These individuals must now provide their most recent tax returns to qualify for vehicle booking, purchase, or registration.
Similarly, for immovable property transactions, a threshold of Rs100 million—based on fair market value—has been introduced. Anyone exceeding this limit must also meet strict tax documentation requirements. Furthermore, for investments in securities, mutual funds, or money market instruments, a cap of Rs50 million has been placed. Investments surpassing this amount will be subject to new scrutiny, provided such amounts are fresh investments and not reinvested funds.
Earlier in the day, the federal cabinet, chaired by Prime Minister Shehbaz Sharif, gave formal approval to the amended finance bill before presenting it to the National Assembly for voting. The cabinet also gave in-principle approval to several legislative amendments and agreed to form a special committee on gas policy matters, which will submit recommendations to the Supreme Court in an ongoing case.
Speaking during the budget session in the National Assembly, PPP Chairman Bilawal Bhutto Zardari welcomed the inclusion of several of his party’s proposals in the final budget. Among the most prominent was a record 20% increase in the Benazir Income Support Programme (BISP), which Bilawal described as “a commendable step” that reflects the government’s commitment to social justice and economic equity.
Prime Minister Shehbaz Sharif took the opportunity to commend Finance Minister Aurangzeb and his economic team for crafting what he called a “realistic and reform-oriented budget.” He also extended appreciation to the federal cabinet and coalition partners for their unwavering support throughout the process.
With the passage of the Budget 2025-26, the National Assembly has taken a pivotal step in shaping Pakistan’s economic future—marking a new phase in fiscal discipline, documentation, and targeted social spending.