Budget 2025–26 Highlights Pakistan’s Budget 2025-26, presented by Finance Minister Muhammad Aurangzeb on June 10, 2025, presents a plan to stabilize the country’s economy, accelerate growth, and bring reforms. Budget 2025–26 Highlights The total budget size is Rs 17.573 trillion. The government has set a target of 4.2 percent GDP growth, 3.9 percent fiscal deficit, and 2.4 percent primary surplus. Budget 2025–26 Highlights The budget emphasizes fiscal discipline, economic reforms, and inclusive growth for all.It proposes measures to address key issues such as inflation, energy sector vulnerabilities, and climate change. This article will provide a simple summary of the highlights of the Budget 2025-26, including a breakdown of various sectors, pros and cons, tax information, and easy-to-understand charts.

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Sectoral Highlights of Budget 2025-26

💰Total budget size: Rs 17.573 trillion, down 7% from last year (Rs 18.9 trillion).

📈GDP growth target: 4.2%, up from 2.7% last year.

📉Fiscal deficit: 3.9% of GDP, up from 5.9%.

➕Primary surplus: 2.4% of GDP, up from 2.0% last year (an improvement).

📊Inflation target: 7.5%, up from 4.7% last year.

🏦FBR tax target: Rs 14.131 trillion, up 18.7% from last year.

💼Non-tax revenue: Rs 5.147 trillion.

🏛️Federal revenue (after sharing with provinces): Rs 11.072 trillion, provinces to share Rs 8.206 trillion.

Taxation and Revenue Reforms in Budget 2025-26

 Relief for salaried class:

📉The tax rate on annual income of Rs 6 to 12 lakh has been reduced from 5% to 1% first and then to 2.5%.

📊Tax on income up to Rs 22 lakh has been reduced from 15% to 11%.

📊Tax on income of Rs 22 to 32 lakh has been reduced from 25% to 23%.

💸Surcharge on income above Rs 10 lakh has been reduced from 10% to 9%.

 Relief in corporate tax:

📉The super tax levied on companies whose income is between Rs 20 and 50 crores has been reduced by 0.5%.

 Digital tax system:

🏭Production in cement, beverages, fertilizers, textiles will now be monitored through a digital system.

🤖A new system of audit and customs checking based on artificial intelligence has been introduced.

📦18% sales tax on e-commerce platforms to be deducted on delivery.

Carbon and Green Tax:

⛽A carbon tax of Rs 2.5 per litre has been imposed on petrol, diesel and furnace oil, which will be reduced to Rs 5 by 2027.

☀️An 18% sales tax has been imposed on imported solar panels to boost local industry.

 Property and Construction:

🏷️Withholding tax on property purchase has been reduced from 4% to 2.5%.

🏢7% excise duty on transfer of commercial property has been abolished.

 Other Tax Measures:

💵Tax on interest has been increased from 15% to 20% (small savers are exempted).

👴5% tax has been imposed on pensioners (below 70 years of age) receiving more than Rs 10 million per annum.

🏦Advance tax on cash withdrawals from banks for non-filers has been increased from 0.6% to 1%.

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Public Sector Development Programme (PSDP) – Budget 2025-26 Highlights

 Federal PSDP Amount:

💰The federation has allocated Rs 1 trillion for development projects. 

📊This is part of the total development budget of Rs 4.224 trillion across the country, out of which Rs 2.869 trillion will be given to the provinces.

 Transport Projects:

🛣️Rs 328 billion have been allocated for roads, railways, maritime and air systems.

🏗️Rs 100 billion for Karachi-Balochistan N-25 Highway

🚗Rs 15 billion for Sukkur-Hyderabad Motorway

🚉Rs 7 billion for Thar Coal Rail Project

 Water Projects:

🚰Rs 133 billion for 34 water projects

🏞️Rs 32.7 billion for Diamer-Bhasha Dam

🌊Rs 35.7 billion for Mohmand Dam

 Energy Projects:

🔌Rs 90.2 billion for 47 energy projects

🌄Rs 20 billion for Dasu Hydropower

💦Rs 35.7 billion for Mohmand Hydro Project

 Education and Health:

🏫Rs 9.8 billion for 11 new schools in backward areas

🏥Rs 14.3 billion for 21 health projects

🏨Rs 4 billion for Jinnah Medical Complex

 Science and Technology:

🧪Rs 4.8 billion for 31 ongoing projects

☀️This includes projects like Pakistan-Korea Solar Testing Lab

 Energy Sector Reforms – Budget 2025-26 Highlights

Power Sector:

💰The government has earmarked Rs 1.186 billion for subsidies in power and other sectors.

🏭Electricity prices for industries have been reduced by 31 percent.

🏡Electricity prices for 1.8 crore household consumers have been reduced by more than 50 percent.

🏢The privatization process of Faisalabad, Gujranwala and Islamabad power distribution companies (DISCOs) is more than half complete.

📉Losses of Rs 140 billion have been reduced in just 9 months.

Renewable and hydropower projects:

🌊Rs 67.2 billion have been earmarked for clean energy projects (such as Dasu and Tarbela).

📟Rs 29 billion have been earmarked for modern metering systems in Islamabad (IESCO).

Oil and gas exploration and production:

🌍The 2024 offshore exploration bid has been launched, bringing in an investment of $ 5 billion.

🏔️The Ricoh Dix project will generate $75 billion in revenue over the next 37 years and create 41,500 new jobs.

Save Your Money from Extra Taxes – Be a Filer Today

Save your hard-earned money and become a tax filer today. Being a tax filer is a sign of being a responsible citizen. Remember that filers are charged half the tax on most services, while non-filers are charged double the tax.

Also Read: How to Check Business Eligibility for Asaan Finance Scheme: Full List for Entrepreneurs

Conclusion

Pakistan’s budget 2025-26 aims to stabilize the country’s economy, accelerate growth, and provide relief to the people through tax reforms. The budget focuses on education, health, energy, and infrastructure projects, while trying to reduce the burden of inflation by providing tax breaks to the salaried class, industries, and filers. Subsidies in the energy sector, clean energy projects, and foreign investment in oil and gas exploration are positive signs for the country’s future.

It is important for the people to fulfill their national duty by becoming tax filers, because becoming a filer can not only avoid additional taxes but also play a direct role in the country’s development. The measures taken in the budget 2025-26 are an important step towards taking Pakistan towards a strong, self-sufficient, and sustainable economy.

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