10/06/2025
Pakistan Budget 2025–26: Key Highlights at a Glance 🇵🇰
The federal government has unveiled a comprehensive budget for the fiscal year 2025-26, shaped by economic constraints and IMF commitments. Here's a concise breakdown:
🔹 Total Budget Volume
📁 Rs. 18 trillion federal budget presented.
💸 Rs. 2 trillion worth of new taxes proposed.
🔹 Revenue Targets
🏛️ Tax Revenue Target: Rs. 14,131 billion
💼 Non-Tax Revenue Target: Rs. 5,167 billion
📊 Total Revenue Target: Rs. 19,298 billion
🔹 Budget Deficit
📉 Estimated at Rs. 6,501 billion (5% of GDP)
🔹 Expenditures
🚫 Non-development expenditures: Rs. 16,286 billion
🏗️ Federal development budget: Rs. 1,000 billion (Includes Rs. 120 billion for N-5 Highway)
🏭 SOEs development allocation: Rs. 355 billion
🏢 Civil government running expenses: Rs. 971 billion
🧾 Subsidies allocation: Rs. 1,186 billion
🔹 Debt & Defence
💳 Interest payments: Rs. 8,207 billion
🛡️ Defence allocation: Rs. 2,550 billion
🔹 Taxation & Levies
❌ Removal of exemptions across sectors
🌱 2.5% Carbon Levy proposed
⛽ Petroleum Levy increase: Rs. 78 ➡️ Rs. 100 per litre
💳 Cash-based petroleum purchases to incur Rs. 2/litre additional cost (Not applicable on digital payments)
💻 New tax measures on YouTubers, freelancers & non-filers
🛍️ Tougher tax enforcement on retailers
📈 GST for non-filers raised from 18% to 20%
🏦 Cash withdrawal tax (non-filers): 0.6% ➡️ 1.2% for over Rs. 50,000
🔹 Provincial Allocations
💰 Rs. 8,206 billion to be transferred to provinces
🏗️ Rs. 3,300 billion provincial development budget
🔹 Government Employees & Pensioners
👔 10% salary increase for government employees
💸 2.5% tax relief across all salary slabs
🧾 30% disparity allowance for Grades 1–16
🧓 10% pension increase
📑 Rs. 1,055 billion allocated for pensions
🔹 Other Key Notes
📋 Budget prepared in line with IMF conditions
⚠️ Government urges realistic expectations.
Pakistan remains under IMF program influence.
