Federal Minister for Finance Muhammad Aurangzeb is scheduled to present the federal budget for the fiscal year 2025–26 in the National Assembly today (Tuesday), with a proposed outlay nearing Rs18 trillion.
The budget session, to be held under the chairmanship of Speaker Ayaz Sadiq at 5 PM, will begin with the recitation of the Holy Quran, Hadith, a Naat in honor of the Holy Prophet (PBUH), and the national anthem. Following the formalities and with the Speaker’s permission, Finance Minister Aurangzeb will present the Federal Budget 2025–26, along with the Finance Bill 2025 and supporting revenue and policy documents.
The proposed budget is expected to be around Rs17.6 trillion—slightly lower than the Rs18.78 trillion of the current fiscal year. The Federal Board of Revenue (FBR) has been given a challenging tax collection target of Rs14.02 trillion, up from the revised target of Rs12.33 trillion, which may prove difficult to meet by June 30, 2025.
The government is also considering a salary and pension increase for public sector employees, with four proposals ranging from 5% to 12.5%. However, the Ministry of Finance is aiming for a modest increase between 7.5% to 10%, along with a Disparity Allowance of up to 30% for employees in grades 1 to 16.
In terms of revenue, non-tax income is projected between Rs4 to Rs4.5 trillion. After transferring approximately 60% of revenue to provinces under the NFC Award (estimated at Rs8 trillion), the federal government will retain around Rs6 trillion in tax revenue and an additional Rs4–4.5 trillion in non-tax income. This will necessitate a budget deficit financing of Rs6 to 7 trillion, which the government aims to manage under IMF fiscal discipline.
Major allocations include:
Defence: Rs2.55 trillion
Markup payments: Rs8.2 trillion (down from Rs9.7 trillion last year)
Pensions: Rs1.05 trillion
Subsidies: Rs1.186 trillion
Grants: Rs1.9 trillion
Federal PSDP (development): Rs1 trillion
The gross revenue receipts are estimated at Rs19.298 trillion, including Rs14.131 trillion from taxes and Rs5.167 trillion from non-tax sources. After provincial transfers, the federal net revenue stands at Rs11.072 trillion. The total federal expenditure is projected at Rs17.573 trillion, with Rs16.286 trillion for current expenditures and Rs1 trillion for development spending.
Speaker Ayaz Sadiq has also approved the schedule for post-budget parliamentary sessions. The Assembly will be in recess on June 11 and 12, with general budget discussions beginning June 13 and continuing until June 21. No session will be held on June 22.
On June 23, the National Assembly will debate the charged expenditures for FY2025–26. Voting on Demands for Grants and Cut Motions will take place on June 24 and 25. The Finance Bill 2025 will be presented for approval on June 26, followed by a discussion and vote on Supplementary Grants on June 27.
Speaker Sadiq assured that all parliamentary parties will be allotted fair time for debate in line with Assembly
