| Pakistan budget for 2025-26 highlights* |
| The government of Pakistan presented the budget for FY2025-26, targeting a modest 4.2 percent growth for FY26, compared to 2.7 percent expected in the outgoing FY2025. |
| Growth targeted at 4.2 percent in FY2026 |
Inflation expected at 7.5 percent in coming fiscal year |
Total outlay targeted at Rs17.6 trillion, down 7 percent or Rs1.3 trillion as compared to Rs18.9 trillion budgeted outlay of FY2026 |
FBR revenue projected at Rs14.13 trillion, up 18.7 percent from outgoing fiscal year |
| Budget deficit proposed at 3.9 percent and primary surplus at 2.4 percent of gross domestic product (GDP) |
Federal non-tax revenue projected at Rs5.15 trillion |
Rs1 trillion allocated for Public Sector Development Programme (PSDP) |
Interest expense of Rs8.207 trillion for FY2026 projected, down 8 percent YoY from FY2025 level of Rs8.9 trillion |
| Agriculture, industrial and services expected to post growth of 4.5 percent, 4.3 percent and 4 percent, respectively in FY2026 |
Rs2.55 trillion for defence spending |
Rs1.05 trillion for pensions |
Rs1.19 trillion for subsidies in energy and other sectors |
| Rs716 billion for Benazir Income Support Programme (BISP), up by 21 percent |
Rs39.5 billion allocated for Higher Education Commission |
Rs4.8 billion for science and technology |
Super tax rates under section 4C proposed to be reduced by half a percentage point for income slabs between Rs200 million to Rs500 million against each slab respectively |
| Govt removed FED of 7 percent and reduced Advance Tax by 150bps on immovable property |
No change in capital gain or dividend tax on stocks |
No change in FED on Fertilizer and Pesticide |
18 percent tax proposed on solar panels |
| Reduced rate of 12.5 percent on autos below 850cc removed. Normal tax of 18 percent likely to be applied |
Carbon tax of Rs2.5/liter imposed on petrol, diesel and furnace oil for FY26 |
Govt proposed to bring down existing 5 percent slab to applicable on income between Rs60k-120k per month to 1 percent. While in subsequent 2 slabs rates (ppts) have reduced from 15 percent to 11 percent, and from 25 percent to 23 percent. The surcharge was reduced from 10 percent to 9 percent. |
| *Different sources |