The government of Pakistan passed the federal budget for the year 2025-26 with an increase in the government salary package and more. The taxes on automobiles are increased. For more updates you can visit TeezNews website.
A federal budget is a government financial plan for improvement in the economy and which outlines projected income of the country. The bill was passed by the federal ministry of Pakistan. The federal government covers health, defence, jobs, education, flights,food and many more and it helps the government to make financial plans. You can read whole budget summary from official website of federal government (finance.gov.pk) The link for budget details is given above.
Salary package and pensions of government employees:
The budget 2025-26 covers many aspects. Let’s first talk about salary packages of government employees. The federal government budget bill gives a big relief to government employees as according to the finance minister of Pakistan their salaries will increase up to 10%. Moreover, employees who have now retired their pension will increase up to 7%. If a person working in the government faces an economic crisis he will be given a 30% allowance.
Tomato, onion and other food items:
Let’s compare 2023 and 2024 budget food prices with 2025. The price of 1kg lemon in 2023 was 480 rupees and in 2024 the price of lemon was raised to 800 rupees now in 2025 the set price for 1 kg lemon is 600 rupees. The price of 1 kg ginger in 2023 was 460 rupees which was raised to 600 rupees in 2024 now in this year’s budget the set price for 1 kg ginger is set at 460 rupees. The price of 1 kg garlic in budget 2025 is set at 200 rupees which was 400 rupees in 2023 and in 2024 it was 460 rupees. The price of 1 kg potato is set at 40 rupees in budget bill 2025 which was 60 rupees s in 2023 and in 2024 the price of 1 kg potato was 70 rupees. Let’s compare for more food items:
| No | 2023 | 2024 | 2025 |
|---|---|---|---|
| Onion(1kg) | 60 Rupees | 80 Rupees | 40 Rupees |
| Gold ( 1 tola) | 230,800 Rupees | 240,300 Rupees | 354,100 Rupees |
| Silver (1 tola) | 2,500 Rupees | 2,820 Rupees | 3,586 Rupees |
| Cow meat ( 1 kg) | 950 Rupees | 1,000 Rupees | 1,400 Rupees |
Petrol and diesel prices:
Let’s discuss petrol and diesel prices for the 2025-26 budget. The price of 1 litre petrol in budget 2025-26 is set at 255 rupees which is 13 rupees less than 2024. The price of 1 litre diesel is set at 254 rupees which is 16 rupees less than the budget of previous year.
Tax revenue and development programs:
In 2024 an amount of 1500 billion was set for new taxes but in 2025 the amount for new taxes is reduced to 700 billion rupees. For development programs an amount of 403 billion rupees is set in the budget of 2025. The government of Pakistan set a goal for investment in assets and projects up to 14.7% which was 12% last year. The goal for GDP progress is set at 4.2% in this budget which was 2% in last year’s budget. For agriculture and farming the estimated growth rate is set at 4.5% which is double as compared to last year’s budget.
The Government of Pakistan also launched a new program in which banks will give an amount of 1 lakh loan to farmers without any difficult conditions.
To increase exports the goal for Pakistani made products is set at 4% which is double as compared to last year’s budget. The government announced an amount of 1000 billion rupees for public development programs in this year’s budget. The budget deficit for this year is 6632 billion rupees.
Military budget ; electricity projects and foreign Pakistanis:
The military budget is increased to an amount of 2550 billion rupees for this year. For electricity projects an amount of 66 billion rupees is set in the budget of 2025-26. For the Terbala hydropower project an amount of 3.4 billion is set in the current budget. For foreign Pakistanis, the government launched a program through which they can submit proofs of their cases online and special quotas will be allocated for foreign Pakistanis in medical universities.
FBR against non-filers; Relief on taxes:
FBR announced strict policies for non-filers such as now non-filers can’t move to foreign countries and also they can’t buy cars and properties in Pakistan. For non-filers tax will be doubled on withdrawal of 50,000 rupees money from the bank. For people with a salary of 6 to 12 lakh annually the tax will be reduced from 5 to 1% in the budget 2025.
Increase in prices of pulses and meat:
The price of 1 kg split chickpeas was set at 360 rupee’s in the recent budget. Earlier the price of 1kg spilt chickpeas was 260 rupees. The price of 1 kg whole red lentils is 400 rupees in the 2025 budget. The price of 1 kg mung beans is set at 440 rupees which was 280 rupees in last year’s budget. The price of 1 kg cow’s meat is 1400 rupees which was 1000 rupees in last year’s budget.
Good and services tax on automobiles:
Government increased GST taxes on automobiles. The GST tax on Suzuki earlier was 12% which is now increased to 18%. The price of Suzuki earlier was 2,827,000 rupees which has now increased to 2,965,209 rupees. The tax on Suzuki is now almost 138,209 rupees. The price of the Toyota Corolla Model 1.8 HEV X 1.8I was 9,449,000 rupees which has now increased to 10,276,332 rupees. The increased tax amount is 827,332 rupees.
Response to bill:
The budget 2025 faced criticism from car manufacturers and also from a few industrialist companies. However for government employees there is an increase in salary package and also pensions will be increased at 7%. For bakery products 10% sales tax is added in budget 2025. On mobile phones, the tax increased to 25% in the recent bill. On beverages, the sales tax is reduced.
According to reports the government of Sindh is not with the government of Pakistan’s budget bill due to the Hyderabad sukhar development fund which was promised by the government in the last meeting but didn’t get fulfilled. The government is also planning to impose tax on freelancers and vloggers.
