Federal Budget 2024-25: Pakistan to Present PKR 17 Trillion Budget in National Assembly Today

The budget heavily prioritizes debt servicing and defense while introducing significant structural changes to tax slabs, relief for the salaried class, and new levies on luxury imports and crypto trading.

ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News- June 12nd, 2026) The federal government is set to present a PKR 17 trillion budget for the upcoming fiscal year in the National Assembly today.

The budget heavily prioritizes debt servicing and defense while introducing significant structural changes to tax slabs, relief for the salaried class, and new levies on luxury imports and crypto trading.

Debt Servicing: A staggering PKR 7,824 billion has been proposed for interest payments on loans.

Defense Budget: Approximately PKR 3,000 billion is expected to be allocated for defense.

Tax Revenue Target: The Federal board of Revenue (FBR) aims to collect an ambitious PKR 15,267 billion.

Petroleum Levy: The government plans to generate PKR 1,727 billion through the petroleum levy.

In a move to provide respite to the salaried sector, the federal government is considering a tax relief package worth approximately PKR 50 billion. Sources indicate that the number of income tax slabs may be increased from six to eight. The proposed tax structures include:

29% Tax Rate: Proposed for monthly incomes up to PKR 467,000.

32% Tax Rate: Proposed for monthly incomes up to PKR 583,000.

35% Tax Rate: The maximum tax rate will be maintained for monthly incomes exceeding PKR 583,000, as well as for individuals with an annual income exceeding PKR 7 million.

Surcharge Abolition: The surcharge on individuals earning over PKR 10 million annually is likely to be abolished.

Additionally, an increase in salaries and pensions for government employees has also been proposed.

Automobiles, Tech, and Crypto Sector Regulations

To widen the tax net, the government is introducing measures targeting digital assets and luxury items:

Crypto Trading: A capital gains tax is expected to be imposed on profits earned from cryptocurrency transactions.

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Electric & Hybrid Vehicles: The sales tax on imported Electric Vehicles (EVs) is likely to be hiked up to 25%, while current tax rates on hybrid vehicles will remain unchanged.

No Changes: Taxes on solar panels, stationery items, and the stock market will see no changes.

Super Tax: A 1% to 2% reduction in the Super Tax has been proposed.

Trade Deficit and Development Curbs

Development Freeze: In a strict austerity measure, no new development projects will be launched in the next fiscal year, with the sole exceptions of the Ministry of Defense and the Ministry of Interior. Furthermore, the tax exemption previously granted to the former tribal areas (FATA/PATA) is likely to be withdrawn.

Inflationary pressures are expected to rise for everyday consumers as dozens of food items are set to become costlier. Essential commodities, including infant formula milk, ghee, and cooking oil, are expected to see price hikes due to revised tax adjustments.

schedule of the Assembly Session

The National Assembly session to present the budget is scheduled to begin at 3:00 PM.

Prior to the session, a federal cabinet meeting chaired by Prime Minister Shehbaz Sharif will be held at 2:30 PM at Parliament House to formally approve the budget proposals. Federal Minister for Finance and Revenue, Muhammad Aurangzeb, will brief the cabinet on the budgetary outlines before its official presentation.