ISLAMABAD: Finance Bill 2026 received presidential assent on Friday, June 26, as President Asif Ali Zardari formally enacted Pakistan’s federal budget for fiscal year 2026-27.
The approval came under Article 75 of the Constitution, according to APP. The federal budget will take effect from July 1, 2026.
Federal Minister for Finance and Revenue Muhammad Aurangzeb presented the budget in the National Assembly on June 12.
The National Assembly passed the Finance Bill 2026 on June 23 after clause-by-clause consideration. The House rejected opposition amendments during passage.
Business Recorder reported that the bill enforces taxation, policy and enforcement measures worth Rs 1.02 trillion for the fiscal year 2026-27.
The budget sets the Federal Board of Revenue tax target at Rs 15,264 billion. It also targets 4% economic growth and 8.2% inflation for the fiscal year.
The total federal budget outlay stands at about Rs 18.8 trillion. Debt servicing remains the largest federal expenditure, according to the budget figures.
Read: FY25 Audit Says Rs3,177bn Spent Without Parliament Approval
The defence allocation stands at Rs 3,000 billion. The Benazir Income Support Programme allocation rose to Rs 838 billion to support vulnerable families.
The final package removed the proposed 9% income tax surcharge on salaried individuals. It also revised the upper threshold for the 35% tax bracket.
The Finance Bill 2026 also includes changes affecting corporate taxation, federal excise duty and sales tax exemptions for local airline leasing.
