Islamabad – The Government of Pakistan has officially presented the Federal Budget 2025–26, outlining major fiscal policies, tax reforms, and economic priorities for the upcoming financial year. With a total budget outlay of Rs. 28.53 trillion, the government aims to streamline tax collection, manage debt servicing, and boost key sectors like education, health, and infrastructure development.

Key Budget Highlights:

✅ Tax Revenue Target: Rs. 14.13 trillion, comprising Rs. 6.9T in direct taxes and Rs. 7.23T in indirect taxes.
✅ Fiscal Deficit: Controlled at 2.32% of GDP, reflecting improved financial discipline compared to the previous 4.6% fiscal deficit.
✅ Debt Servicing: Rs. 8.2 trillion allocated for interest payments and loan repayments.
✅ Defense Budget: Increased to Rs. 2.55 trillion, compared to last year’s Rs. 2.18 trillion allocation.
✅ Education & Health: Rs. 112 billion for education and Rs. 31.7 billion for healthcare services.
✅ Climate Resilience: 6.9% of the current budget dedicated to sustainability and environmental protection.
✅ Gender Empowerment: 9.2% of total allocations set aside to promote women’s economic and social development.
✅ Energy Sector Subsidies: Rs. 636.9 billion to support Pakistan’s power infrastructure and reduce costs for consumers.
✅ BISP Allocation: Rs. 722.5 billion dedicated to social safety nets, ensuring direct relief for low-income communities.

Strategic Goals and Economic Vision

The budget reflects Pakistan’s ambition to strengthen fiscal responsibility, digital taxation, and economic recovery. A 5% withholding levy will now apply to payments made to foreign and domestic digital vendors, ensuring global platforms like Amazon, Google, Netflix, and Daraz contribute to Pakistan’s tax net. Additionally, new regulations on e-commerce and cash-on-delivery transactions aim to tighten compliance while supporting local businesses.

Pakistan’s policymakers have emphasized that the budget is geared towards stabilizing the economy, tackling inflation, and driving sustainable growth while addressing debt challenges and expanding social development programs.

Stay tuned for further updates on policy implementation and market reactions following the announcement!