Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, stated that the government has presented a balanced budget under difficult circumstances, incorporating suggestions and recommendations from all stakeholders. A key decision is to impose a 1% tax rate on annual incomes up to Rs. 1.2 million, while solar panels will now be taxed at 10%.
According to the state news agency APP, during the winding-up speech on the federal budget debate in the National Assembly, the finance minister expressed gratitude to the Prime Minister, Deputy Prime Minister, MNAs, standing committee members from the National Assembly and Senate, coalition party members, and all contributors to the budget planning and finalization.
He highlighted that the upcoming fiscal year will focus on reducing government expenses and broadening the tax base through reforms and digitization in the FBR. Tax burdens on salaried individuals have been reduced, and relief has been provided to the construction sector.
He emphasized rationalizing tariffs and facilitating imported raw materials and tariff lines to boost exports and industrial growth. A new industrial policy and an electric vehicle policy will be announced soon.
Reforms in key sectors, including energy, will continue. The Benazir Income Support Programme (BISP) budget has been increased from Rs. 592 billion to Rs. 716 billion, aiming to support around 10 million families. The initiative also includes skills development to empower families to break the poverty cycle and play an active role in the economy.
Furthermore, the government will fund the Benazir Skills Development Programme and, in partnership with the British Asian Trust, will launch Pakistan’s first Skills Impact Bond — a results-driven model for market-aligned youth training.