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Zardari Signs Finance Act, Pakistan’s Rs18 Trillion Budget Set to Begin July 1

Presidential approval puts new tax, tariff and enforcement measures into legal effect and activates a 7% pay and pension increase for public servants.

Overview

  • President Asif Ali Zardari gave formal assent to the Finance Bill on June 25, converting it into the Finance Act 2026-27 and completing the legislative process.
  • The budget has a total outlay above Rs18 trillion and will legally take effect at the start of the fiscal year on July 1 after publication in the official gazette.
  • Government employees and pensioners will receive a seven percent salary and pension increase from the first day of the new fiscal year.
  • The finance package relies heavily on indirect and withholding taxes and on enforcement measures reported at about Rs1.02 trillion to reach a Federal Board of Revenue target near Rs15,264 billion.
  • The Act also trims and removes many tariff exemptions and cuts average duties with an estimated import-stage revenue implication of roughly Rs143.4 billion, and the budget allocates large sums to debt servicing, defence and expanded social programs which could shape near-term fiscal pressure and household relief.