Islamabad: The federal budget for 2025–26 was approved during a meeting of the federal cabinet chaired by Prime Minister Shehbaz Sharif.
According to sources, the cabinet approved a 6% increase in salaries for government employees and a 7% increase in pensions for retired employees.
The budget document has been delivered to the Parliament House under strict police security.
It is worth noting that the upcoming fiscal year’s budget, amounting to approximately PKR 18 trillion, will be presented in the National Assembly today. The budget includes proposals for new taxes totaling nearly PKR 2 trillion.
In the new budget, non-development expenditures are expected to reach PKR 16.286 trillion, while the budget deficit is estimated to be around 5% of GDP, which equals PKR 6.501 trillion.
There is also a proposal to eliminate tax exemptions across all sectors. The target for tax revenue collection is expected to be PKR 14.131 trillion, while the target for non-tax revenue is expected to be PKR 5.167 trillion.
The total revenue target, including both tax and non-tax sources, is set at PKR 19.298 trillion.