Finance Bill Passed Amid Heated Debate; PPP Secures Key Concessions in Rs17.57 Trillion Budget
ISLAMABAD – The National Assembly on Wednesday approved the Finance Bill 2025-26, cementing a Rs17.573 trillion federal budget amid strong political debate and last-minute amendments that shifted the tone of the session.
The budget, aimed at reviving economic momentum with a targeted 4.2% GDP growth, saw fiery exchanges between government and opposition benches—yet ultimately passed clause by clause, with all amendments proposed by Finance Minister Muhammad Aurangzeb gaining approval.
🎤 PPP Voices Concerns, Then Backs Budget After Concessions
In a major development, the Pakistan Peoples Party (PPP) initially raised strong objections to certain “politically unpopular” clauses but later threw its full weight behind the bill following successful negotiations.
PPP Chairman Bilawal Bhutto Zardari, speaking in the House, confirmed his party’s support after key proposals were accepted. These included:
- A 50% reduction in the proposed solar panel tax
- Continuation of the tax exemption for salaried individuals earning up to Rs1.2 million annually
- Increased funding for BISP (Benazir Income Support Programme)
“We appreciate the government’s efforts,” Bilawal said. “Our concerns about the FBR were taken seriously, and necessary amendments were made. This is a win for the people.”
🧾 Key Legislative Amendments Approved
Several critical amendments were passed, including:
- Sales Tax Act, 1990: The controversial power to arrest tax defaulters has now been moved from the tax commissioner to the finance committee, but only applicable for fraud cases exceeding Rs50 million. The FBR will not have arrest powers during investigations.
- Salaries and Allowances Act: All ministers and ministers of state will now draw salaries equal to members of parliament.
- Income Tax Ordinance, 2001: A significant number of 107 institutions were granted tax exemptions. These include:
- Edhi Foundation, Shaukat Khanum Memorial, LUMS, Foundation University
- Bar Councils, Army Welfare Trust, GIK Institute
- Audit Oversight Board, Poverty Alleviation Fund, and more.
Additionally, pensions for former presidents and their widows have been made tax-exempt.
💰 Budget Snapshot: Rs17.57 Trillion at a Glance
The federal budget for FY2025-26 proposes:
- Rs16.286 trillion for current expenditure (↓5.33% from last year)
- A 6.9% overall reduction compared to the previous year’s Rs18.88 trillion budget
- A strong focus on revenue generation, institutional reforms, and economic consolidation
