ISLAMABAD: The National Assembly on Thursday approved Pakistan’s federal budget for the fiscal year 2025–26, amounting to Rs17.573 trillion. Passed by a majority vote during a session chaired by Speaker Sardar Ayaz Sadiq, the budget includes significant income tax exemptions for more than 106 organizations across the country. These exemptions are aimed at supporting sectors such as education, healthcare, welfare, and national development.
According to the Finance Bill 2025–26, the income tax exemptions have been granted to institutions registered as trusts, non-profits, or foundations. Among the key beneficiaries are the FBR Foundation, WAPDA, Pakistan Agricultural Research Council (PARC), SECP, Privatization Commission, Prime Minister’s Special Funds, Fauji Foundation, Army Welfare Trust, and the Aga Khan Development Network. Others include Karandaaz Pakistan, Al-Shifa Trust, Al-Shifa Eye Trust, Akhuwat Foundation, Al-Khidmat Foundation, Businessman Hospital Trust, Dawat-e-Islami Trust, and various educational institutions such as Ghulam Ishaq Khan Institute (GIKI), LUMS, ZABIST, and COMSATS University.
Major healthcare institutions like Shaukat Khanum Memorial Trust and Indus Hospital also received tax-exempt status, alongside legal bodies such as the Pakistan Bar Council and the four provincial bar councils. National-level relief and development funds — including the Supreme Court Dams Fund and the Prime Minister’s Flood Relief Fund — were also included in the exemption list. A notable provision in the bill also exempts pensions received by former presidents or their widows from income tax.
The budget’s approval came after a clause-by-clause review in which all opposition cut motions were rejected. Earlier in the day, the federal cabinet, led by Prime Minister Shehbaz Sharif, gave its nod to the Finance Bill 2025–26 with amendments before it was presented in the assembly. Following the budget’s passage, the National Assembly session was adjourned until 11:00 AM the next day.
