ISLAMABAD (Kashmir English): The National Assembly (NA) session for the presentation of the federal budget for fiscal year 2026-27, with Speaker Sardar Ayaz Sadiq in the chair, has begun after a delay of two hours.
Finance Minister Muhammad Aurangzeb is presenting the federal budget 2026-27, worth over Rs18 trillion, in the National Assembly amid the ruckus by the opposition.
During the proceedings, PTI lawmakers also brought placards and posters into the NA.
Earlier, the federal cabinet, in a meeting chaired by Prime Minister Shehbaz Sharif, approved the Annual Budget 2026-27 documents and the draft Finance Bill. The premier also signed the budget documents after its approval by the cabinet.
Chairman Pakistan Peoples Party (PPP), Bilawal Bhutto Zardari, is also participating in the session, after his party announced that he would miss the proceedings.
In a post on X, PPP spokesperson Nadeem Afzal Chan said the party has decided not to boycott the budget session, but Bilawal Bhutto will not participate.
However, the federal Interior Minister Mohsin Naqvi and Minister of State for Interior Talal Chaudhry met him and convinced him to attend the session. Deputy Prime Minister Ishaq Dar and Law Minister Azam Nazeer Tarar also met Bilawal in his chamber.
Macroeconomic findings (PSDP)
According to the budget document, the total outlay of the federal budget is fixed at Rs 18.7 trillion, of which Rs 8 trillion will be allocated for interest payments.
The government has set the total National Development Outlay at Rs3.675 trillion, out of which Rs 1,000 billion has been earmarked for Public Sector Development Programme (PSDP), Rs2,224 billion for provincial ADPs, and Rs451 billion for federal state-owned enterprises.
The proposed Rs 1,000 billion PSDP includes Rs 603 billion for infrastructure, Rs 181 billion for social, Rs 13 billion for governance, Rs 41 billion for science and IT, Rs 89 billion for Gilgit-Baltistan and Azad Jammu and Kashmir, Rs 56 billion for merged districts, Rs 13 billion for production, and Rs 5 billion for multiple sectors.
Moreover, the government has proposed a total expenditure of Rs 1,169 billion for pensions, out of which Rs 822 billion is estimated for military pensions and Rs 272 billion for civil pensions.
Tax reduction for salaried class
The government has proposed a big relief for the salaried class, reducing annual income tax.
For individuals earning between Rs2.2 million and Rs3.2 million annually, the tax rate has been reduced from 23% to 20%. For those earning between Rs3.2 million and Rs4.1 million, the rate has been cut from 30% to 25%.
Income earners in the Rs4.1 million to Rs5.6 million bracket will now pay 29% tax instead of 35%. For those earning Rs5.6 million to Rs7 million annually, the rate has been reduced from 35% to 32%.
The government has also decided to abolish the surcharge imposed on the salaried class.
Read more: Budget 2026-27: Big relief for salaried class
Salary, pension increase
The government has proposed an increase in the salaries and pensions of public sector employees in the federal budget 2026-27.
As per details, the government has proposed a 7% increase in the salaries of public sector employees and 7% increase in pensions for retired government employees.
In addition, the federal government has suggested a 10% increase in the minimum wage.
Read more: Budget 2026-27: Big relief for govt employees
More to Follow
