President Zardari Signs Finance Bill 2026 Into Law

President Asif Ali Zardari has given his formal assent to the Finance Bill, 2026, completing the legislative process for Pakistan's federal budget for the upcoming fiscal year. The signing came just days after the National Assembly approved the bill, clearing the way for the government's financial roadmap covering July 1, 2026, onward.

Lawmakers had earlier adopted amendments to Clauses 5, 6, and 6A proposed by the finance minister, while more than 60 opposition amendments from PTI and JUI-F members were voted down. The approved budget sets an economic growth target of 4.0% for FY 2026-27, alongside projected inflation of 8.2% and a fiscal deficit of 3.6% of GDP.

President's Assent Finalizes Budget Process

President Zardari's signature on the Finance Bill, 2026, marks the final constitutional step required to enforce the federal government's tax and spending plan for the new fiscal year.

The move follows close on the heels of the bill's passage in the National Assembly earlier in the week, where lawmakers debated and voted on multiple provisions tied to revenue collection and public expenditure.

With presidential assent now secured, the financial proposals contained in the bill take legal effect starting July 1, 2026.

Amendments Adopted in Key Clauses

During the National Assembly session, members approved changes to Clauses 5, 6, and 6A that had been put forward by the finance minister.

At the same time, the House rejected recommendations sent by the Senate concerning Clause 6, opting instead to retain the version backed by the government's economic team.

Opposition Amendments Rejected by Majority Vote

Members belonging to the Pakistan Tehreek-e-Insaf (PTI) and Jamiat Ulema-e-Islam-Fazl (JUI-F) had jointly tabled over 60 proposed amendments covering Clauses 2, 3, 4, 5, 6, and 8.

Each of these amendments was put to a voice vote and rejected by the House majority, leaving the government's original budget framework largely intact.

Macroeconomic Targets for Fiscal Year 2026-27

The approved budget lays out a set of macroeconomic benchmarks the government intends to pursue over the coming fiscal year.

• Economic growth rate: projected at 4.0%

• Inflation: expected to remain around 8.2%

• Fiscal deficit: estimated at 3.6% of GDP

• Primary surplus: projected at 2.0% of GDP

Revenue and Expenditure Estimates

The Federal Board of Revenue (FBR) has been assigned a collection target of Rs15.264 trillion, representing a rise compared with the outgoing fiscal year.

Net federal revenues for the year are estimated at Rs11.752 trillion, while total government expenditures are projected at Rs18.77 trillion.

Of the total expenditure, roughly Rs8.05 trillion has been earmarked for debt servicing and markup payments, underscoring the continued weight of debt obligations on the federal budget.

Development Spending and Defence Allocations

The Federal Public Sector Development Programme (PSDP) has been allocated Rs1 trillion, while the broader national development programme — which includes provincial components — is estimated at approximately Rs3.675 trillion.

Defence services received an allocation of Rs3 trillion under the approved budget, alongside substantial funding directed toward pensions, civil administration costs, subsidies, and social protection initiatives.

Boost for Social Protection Programmes

The Benazir Income Support Programme (BISP) was allocated Rs838 billion, a notable increase from the previous fiscal year aimed at widening social protection coverage and strengthening assistance for vulnerable households.

Salary and Pension Relief for Government Employees

The budget includes a 7% increase in salaries for government employees, matched by a similar 7% raise in pensions.

Additional relief measures were also announced for public sector employees and members of the armed forces. Separately, the government has structured relief for salaried individuals across four distinct income slabs.

Customs Duties on Imported Vehicles and Electric Vehicles

Beginning July 1, 2026, new customs duty rates will apply to imported vehicles based on engine capacity and value.

• Vehicles with engine capacity between 2,000cc and 3,000cc will face an 86% duty.

• Vehicles above 3,001cc will be subject to a 92% duty.

• Electric vehicles valued between $75,000 and $110,000 will attract a 30% customs duty.

• Electric vehicles valued above $110,000 will face a 40% customs duty.

• Electric vehicles valued at $75,000 or below will remain exempt from customs duty.

Tax Measures on Stationery and Small Vehicles

The budget introduces a concessional sales tax of 10% on children's pencils, pens, and sharpeners.

A one-time fixed tax of Rs10,000 has been levied within federal jurisdiction on vehicles up to 1,000cc, while pre-2010 models in the same category will attract a token tax of Rs20,000.

Note: This article is based strictly on the source information provided. No additional facts, figures, or quotes beyond the supplied material have been included.

[Source: geo news]