Tax Breaks Extended to 50+ Entities — Who’s on the List?
July 2, 2025
The Finance Bill 2025-26, recently passed by Parliament, has introduced tax exemptions for over 50 institutions spanning public, welfare, development, and international organizations. The bill is expected to become law following presidential assent by President Asif Ali Zardari.
These exemptions cover a broad range of entities, including state-owned corporations, charitable institutions, financial bodies, and military-affiliated organizations. According to official sources, this move aims to promote welfare, development, and public interest causes, while aligning with the government’s fiscal and social priorities.
Key Entities Granted Tax Exemptions:
-
Government and Regulatory Bodies:
State Bank of Pakistan (SBP), SBP Banking Services Corporation, Securities and Exchange Commission of Pakistan (SECP), Privatisation Commission, Federal Board of Revenue Foundation, and the Public Private Partnership Authority. -
Military-Linked and Welfare Organizations:
Fauji Foundation, Army Welfare Trust (AWT), Army Officers Benevolent Fund, Benevolent Fund/Bereaved Family Scheme. -
Research and Scientific Institutions:
Pakistan Council of Scientific and Industrial Research (PCSIR), Pakistan Agricultural Research Council (PARC), Water and Power Development Authority (WAPDA), and Commission on Science and Technology for Sustainable Development in the South (COMSATS). -
Charitable and Development Funds:
Prime Minister’s Special Fund for Victims of Terrorism, Chief Minister (Punjab) Relief Fund for IDPs, National Disaster Risk Management Fund, Supreme Court’s Diamer Bhasha & Mohmand Dams Fund, PM’s COVID-19 Relief Fund-2020, National Endowment Scholarship for Talent (NEST), and Balochistan Education Endowment Fund (BEEF). -
International and Multilateral Bodies:
International Finance Corporation, Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), Islamic Chamber of Commerce & Industry (OIC), ECO Trade and Development Bank, Islamic Corporation for Development of Private Sector, International Islamic Trade Finance Corporation, Saarc Energy Centre, Saarc Arbitration Council (SARCO), and International Parliamentarians’ Congress. -
Health and Social Welfare Institutions:
Shaheed Mohtarma Benazir Bhutto Institute of Trauma (Karachi), Pakistan Poverty Alleviation Fund, National Rural Support Programme, Karandaaz Pakistan (exempt from tax year 2015 onwards), and Agha Khan Development Network (Pakistan). -
Notable Individual Exemptions:
The pension of a former president and his widow has also been declared tax-exempt. Additionally, a special provision allows tax exemption on monetary awards granted to sportspersons representing Pakistan in the Olympic Games, effective from tax year 2025.
The exemption also applies to corporatized units of WAPDA, from the date of their creation until completion of their corporatization process.
