President Asif Ali Zardari has approved the Finance Bill 2026-27, formally clearing the way for Pakistan’s federal budget to take effect from 1 July 2026. The approval completes the legislative process and allows the government to begin implementing fiscal measures outlined in the new financial plan.
Following presidential assent, officials confirmed that the Finance Bill will be forwarded to the Printing Corporation for publication in the official gazette. Consequently, the federal budget with a total outlay exceeding Rs18 trillion will officially come into force at the start of the new fiscal year.
Under the Finance Bill, the government has announced a seven percent increase in salaries and pensions for public sector employees. In addition, revised tax structures and duties included in the budget will also be enforced from 1 July across various sectors of the economy.
Earlier, the National Assembly had passed the budget after completing a detailed clause-by-clause review of the Finance Bill. The approval process included debates on multiple amendments, while government-supported changes were accepted and opposition proposals were rejected.
Among the rejected amendments was a proposal to reduce tax on vehicles up to 1,000cc from Rs20,000 to Rs10,000. Other suggestions from opposition members, including changes to specific clauses of the bill, also failed to secure majority approval during the voting process.
With the Finance Act 2026-27 now in place, the federal government will proceed with the implementation of development programmes and fiscal initiatives. Officials say the budget aims to support economic targets, manage public expenditure and guide financial planning for the upcoming year.