On June 26, 2025, Bilawal Bhutto Zardari, chairperson of the Pakistan Peoples Party (PPP), announced the party’s support for the federal budget after the government agreed to exempt salaried individuals earning up to Rs1.2 million annually from income tax.
Speaking in the National Assembly, he confirmed additional concessions, including a 20% increase in the Benazir Income Support Programme (BISP) budget. Consequently, these measures addressed key PPP demands, securing their backing for the budget.
Bilawal highlighted the income tax exemption as a major win. Initially, the PPP pushed for a Rs1 million threshold. However, the government raised it to Rs1.2 million, offering relief to millions of salaried workers. Additionally, a reduced sales tax on solar panels aligns with the party’s focus on affordability. For instance, this move supports sustainable energy access, a growing priority. The concessions reflect the PPP’s influence in shaping policies that ease financial burdens for the middle class.
Read: Pakistan Secures IMF Income Tax Relief for Salaried Class
The PPP had opposed granting arrest powers to the Federal Board of Revenue (FBR), as reported by The Express Tribune. Initially, the party resisted the budget over these powers. Meanwhile, Deputy Prime Minister Ishaq Dar negotiated limits, restricting FBR arrests to cases involving sales tax forgery. No arrests will be made during inquiries, and tax fraud remains a bailable offence. These safeguards resolved the PPP’s concerns, ensuring their support.
The government also met the PPP’s demand for a 20% increase in the BISP budget, now set at Rs 716 billion for the next fiscal year. This enhancement strengthens support for low-income families, a core goal of the PPP. As a result, the program will reach more vulnerable households, promoting social equity. Bilawal emphasised this as a key achievement, reflecting the party’s commitment to welfare.
