Islamabad: Finance Minister Senator Muhammad Aurangzeb has described the budget for the next financial year as balanced, emphasizing that measures have been taken to pave the way for inclusive and sustainable economic growth.
Winding up the discussion on the Federal Budget 2025-26 in the National Assembly on Monday, Muhammad Aurangzeb highlighted the revisions made to the budgetary proposals.
The Finance Minister said the government is cognizant of tax burden on salaried class. He said it has been decided to take one percent tax from those earning between six hundred thousand rupees and 1.2 million rupees. He said sales tax on imported solar panels is being reduced from eighteen percent to ten percent.
He said that the powers of FBR have also been reviewed to avoid the misuse of authority. He said the FBR cannot arrest a person in cases up to 50 million rupees without judicial warrant.
Muhammad Aurangzeb presented three new measures aimed at meeting the revenue shortfall. He stated that effort has been made to ensure that only the affluent class falls within their scope. Federal Exercise duty at the rate of ten rupees has been imposed on one-day old chicken and rates have been increased on companies' investment in mutual funds and earnings from investment in government securities.
The Finance Minister said while managing the government expenditures, the focus remains on increasing revenues by broadening the tax base and enhancing tax compliance.
He informed the House that digitalization is being promoted and new laws being introduced to ensure better tax compliance.
The Finance Minister said the government has reduced tax burden on the salaried class while the construction industry has been facilitated. He said reduction in import duties will bring down the cost of inputs for the industries and help bolster our exports. He said these steps will also help curb smuggling, promote industries and help enhance government revenues.
Muhammad Aurangzeb said the government will soon announce an industrial policy while consultation process has been started for the EV policy.
He mentioned that the budget of Benazir Income Support Program has been enhanced from 592 billion rupees to 716 billion rupees. He said the government is also about to introduce Pakistan's first Skills Impact Bond to align the youth with market oriented skills.
He said the government has prepared a flagship program to provide loans to the small farmers without any guarantee. Under this program, loans up to one million rupees will be provided to the farmers having up to 12.5 acres of land through digital means.
He said the farmers will also be provided with crop and life insurance facilities. In addition, a mechanism of electronic warehouse receipts is being evolved for the farmers, emphasizing this will ensure that the farmers get better price of their produce.
Muhammad Aurangzeb said the government is also introducing house financing scheme for low income groups to own a house.
He said loans worth fourteen billion rupees were provided to one hundred and ninety three thousand women under women inclusive finance program. He said another 14 billion rupees will be provided to women in the next year.