PAKISTAN BUDGET 2025-2026

Pakistan Budget

 2025-26: Tax Cuts,

 Salary Hikes &

 Growth Plans

                By: Liaqat Pirzada 

On June 10, 2025, Pakistan’s government announced its Budget 2025-26, bringing changes to boost the economy, cut taxes, and support families. It targets 4.2% growth, up from 2.7% last year, and sets the budget at PKR 17.6 trillion, down 7% from PKR 18.9 trillion. This plan saves money while growing. Let’s explore the Pakistan Budget 2025-26 and its key highlights.

What’s in the Budget?

This budget balances savings and growth. It’s trending for searches like Pakistan Budget 2025-26, tax cuts 2025, and salary increase Pakistan.

Economic Growth Goals

• Growth Target: 4.2% growth for FY26, beating FY25’s 2.7%.
• Inflation: Aimed at 7.5% to keep prices affordable.
• Budget Deficit: Set at 3.9% of GDP, with a 2.4% surplus.
• FBR Revenue: PKR 14.13 trillion target, up 18.7%, trending in FBR tax targets 2025.
• Non-Tax Revenue: Expected at PKR 5.15 trillion.

These goals drive searches like Pakistan economic growth 2025 and budget deficit Pakistan.

Key Sectors Boosted

• Farming: Targeting 4.5% growth for farmers.
• Industry: Aiming for 4.3% growth for factories and jobs.
• Services: Planning 4% growth for new opportunities.

These are big for Pakistan agriculture growth 2025 and industrial growth Pakistan.

Major Spending Plans

• Development Projects: PKR 1 trillion for roads and schools, trending in PSDP funding Pakistan 2025.
• Defense: PKR 2.55 trillion for Army, Air Force, and Navy, with special allowances. Pakistan defense budget 2025 is trending!
• Pensions: PKR 1.05 trillion with a 7% pension increase.
• Subsidies: PKR 1.19 trillion for energy, linked to energy subsidies Pakistan 2025.
• BISP: PKR 716 billion, up 21%, for social welfare Pakistan.
• Education: PKR 39.5 billion for colleges.
• Science & Tech: PKR 4.8 billion for Pakistan innovation 2025.

Support for Workers and Retirees

• Salary Hike: 10% raise for government workers, trending in Pakistan salary increase 2025.
• Pension Boost: 7% increase for retirees.
• Disparity Allowance: 30% allowance to close salary gaps, big for Pakistan employee benefits 2025.

Tax Relief Measures

• Super Tax: Rates for PKR 200–500 million incomes cut by 0.5%.
• Property Tax: 7% FED on real estate removed, plus 150 basis point cut in advance tax. Pakistan real estate 2025 is trending!
• Income Tax:
  • Monthly income of PKR 60,000–120,000 taxed at 1% (down from 5%).
  • Next slabs cut from 15% to 11% and 25% to 23%.
  • Surcharge reduced from 10% to 9%. Pakistan tax reforms 2025 is hot!
• Solar Panels: 18% tax proposed, linked to renewable energy Pakistan.
• Car Tax: 12.5% rate on cars below 850cc gone; now 18%.
• Carbon Tax: PKR 2.5/liter on petrol, diesel, and furnace oil, driving Pakistan carbon tax 2025.
• Fertilizer/Pesticide: No tax changes, supporting agriculture tax Pakistan.
• Stock Market: No changes to capital gains or dividend taxes, calming Pakistan stock market tax 2025.

Debt Savings

Interest payments are PKR 8.207 trillion, down 8% from FY25’s PKR 8.9 trillion, showing smart Pakistan debt management 2025.

Why This Budget Matters

The Pakistan Budget 2025-26 blends tax relief, salary boosts, and growth plans. From pension increases to defense allowances, it supports everyone. With PSDP funds and sector growth, Pakistan is set for progress. Searches like Pakistan Budget 2025-26, tax relief Pakistan, and BISP funding 2025 are trending!

Note: Check official government websites for full details.