As the new fiscal year begins on July 1, Pakistan has officially enforced the 2025-26 budget after receiving presidential approval from Asif Ali Zardari. The budget introduces strict tax measures and financial changes that are expected to affect individuals and businesses across the country.
The government has imposed Rs 389 billion in enforcement actions and added Rs 312 billion in new taxes. Among the major changes, tax on mutual fund investments has increased from 25% to 29%, and a 10% sales tax has been introduced on the sale of solar panels — a move that has sparked criticism due to rising energy costs.
Moreover, the Federal Board of Revenue (FBR) has received broader powers to track transactions using registered CNICs. For the first time, investments in Treasury Bills (T-Bills) and Pakistan Investment Bonds (PIBs) are now subject to taxation, impacting investors looking for safer assets.
Another major step is the inclusion of e-commerce platforms and online businesses under the FBR’s compliance umbrella. Digital sellers must now register officially, as the government pushes to regulate the growing online economy and improve tax collection.
In addition, the government has secured the authority to raise the Petroleum Development Levy (PDL) up to Rs 90 per litre, potentially causing an increase in fuel prices in the near future. This decision could further strain household budgets already burdened by inflation.
Lastly, revised income tax slabs for salaried individuals are now in effect, changing how monthly incomes will be taxed. As the new fiscal policies roll out, citizens and businesses alike brace for the impact of a tighter financial landscape.