ISLAMABAD – Pakistan’s lower House of Parliament, National Assembly, approved Rs18.77 trillion federal budget for fiscal year 2026-27 with certain amendments, rejecting opposition calls for public consultation and clearing the way for punitive taxes, revenue measures, and government expenditure.
Amid fierce opposition protests and intense political exchanges, National Assembly approved Finance Bill 2026 with support of coalition partners, as all government-sponsored amendments presented by Finance Minister Muhammad Aurangzeb were adopted. Opposition lawmakers, however, suffered a complete setback after every amendment they proposed was voted down.
The passage of Finance Bill comes at critical time for PML-N led government, which is seeking to revive economic growth, woo investment, and stabilize public finances despite facing an estimated revenue shortfall of nearly Rs1 trillion in the outgoing fiscal year.
Authorties set ambitious revenue collection target of Rs15.264 trillion for FY2026–27 with projected growth of 17.6% in revenue collection and underscores the administration’s determination to strengthen the country’s fiscal position.
The budget package includes relief measures for salaried individuals alongside tax incentives for exporters, the real estate sector, and the construction industry. Officials argue that these measures will help stimulate economic activity and support the government’s goal of achieving 4% GDP growth in the coming fiscal year.
The legislation has not escaped criticism. Just days before its passage, the National Assembly Standing Committee on Finance raised concerns over the introduction of last-minute amendments without adequate technical review or parliamentary scrutiny. The committee warned that rushed legislative changes could weaken the quality of laws, create legal uncertainties, and pose challenges during implementation.
Finance Committee Chairman Syed Naveed Qamar stressed the importance of maintaining a balanced and sector-neutral policy environment. He argued that such an approach would promote fair competition and contribute to the development of a stronger, more resilient aviation industry.
With the Finance Bill now approved, attention is shifting to how the government will meet its ambitious revenue goals while balancing economic growth, tax relief, and investor confidence in the year ahead.
Budget 2026: Good News for Pakistanis earning up to Rs300,000 a Month amid Tax Relief
