Pakistan News
Budget 2025-26: Austerity budget offers ‘crumbs’ for relief
• Next year’s revenue target set at Rs14.13tr
• Provinces’ contribution helps Centre outperform fiscal target, record lowest budget deficit in a decade
• Subsidy allocations have been reduced by 14pc
• Reduced debt servicing drives expenditure containment of nearly Rs2.26tr
• Generous tax relief, incentives for construction sector
• Fuel levy, electricity surcharges to rise next year
• Tough crackdown planned on non-filers, tax evaders
• Development spending squeezed to cut deficit
ISLAMABAD: Maintaining an aggressive stance on fiscal consolidation, as required by the International Monetary Fund (IMF), Finance Minister Muhammad Aurangzeb on Tuesday still managed to offer some notional relief to the salaried class in the federal budget for fiscal year 2025-26, along with incentives for the real estate and construction sectors, in an effort to revive the struggling industrial sector and stimulate economic growth.
At the same time, however, the government announced it was imposing a ‘carbon levy’ of Rs2.5 per litre on petrol, diesel and furnace oil in the upcoming fiscal year, to be doubled the following year. It also introduced a 5 per cent tax on large pensions, an 18pc tax on imported solar panels, and an increase in the debt servicing surcharge on electricity to finance not only interest payments, but also principal debt. Additionally, it announced the gradual elimination of tax exemptions for the tribal areas beginning this year.
Ambitious targets
Despite a record tax shortfall of Rs1.07 trillion recorded for the current fiscal year, the finance minister set next year’s revenue target at Rs14.13tr — an 18.7pc increase from this year’s revised estimate of Rs11.9tr, against the original budget target of Rs12.97tr. This would include approximately Rs840 billion in additional revenue measures, on top of a Rs1.39tr automatic tax increase supported by projected inflation of 7.5pc and economic growth of 4.2pc and expenditure containment of nearly Rs2.26tr (equivalent to 2pc of GDP), driven primarily by reduced debt servicing costs, and also at the expense of development and public welfare initiatives.
Not only the Federal Board of Revenue (FBR), but the provincial governments, too, were unable to meet their commitment of maintaining a Rs1.22tr surplus for the current year. Still, they provided vital support to the federal government with a surplus of Rs1.01tr.
This contribution enabled the federal government to outperform its fiscal target and record a budget deficit of just 5.6pc of GDP (Rs6.44tr) — the lowest in a decade since FY2015-16 — compared to a higher projected deficit of 5.9pc (Rs7.28tr). This notable fiscal tightening was achieved through punishing additional taxation measures amounting to Rs2.2tr (1.8pc of GDP) alongside a reduction in expenditure as interest rates declined from a historic peak of 22pc.
Accordingly, the FY2025–26 budget sets an ambitious target to reduce the budget deficit to 3.9pc of GDP (Rs5.04tr), contingent upon a cash surplus of Rs1.46tr from the provinces. As a result, the primary budget surplus is projected to rise to 2.4pc of GDP, or Rs3.17tr, for the next year — up from this year’s 2.2pc of GDP (Rs2.5tr).
Relief for select groups
The government found sufficient fiscal space to offer some relief to the salaried class, who have been burdened by high tax rates, declining real incomes, and severe inflation over the past two years.
The finance minister proposed a reduction in income tax by half, to 2.5pc, on annual income between Rs600,000 and Rs1.2 million. It is pertinent to mention that there was a discrepancy in the income tax rate for the lowest taxable bracket announced by the finance minister and the tax rate mentioned in the finance bill, which was even lower at 1pc.
https://www.dawn.com/news/card/1916323
Clarity is awaited on this matter. Similarly, the annual tax on a salary of Rs1.2m was proposed to be reduced to Rs6,000, down from the current Rs30,000. Mr Aurangzeb added that the income tax rate for those earning up to Rs2.2m per annum would be cut to 11pc, down from the current 15pc. Similarly, the tax rate has been reduced to 23pc from 25pc for salaried income between Rs2.2m and Rs3.2m. In addition, the finance minister acknowledged that oppressive tax rates were driving highly skilled professionals to migrate, contributing to a “brain drain”. As a corrective measure, he announced a 1pc reduction in the surcharge on annual incomes exceeding Rs10m.
Apart from this, a 10pc increase in salaries and 7pc rise in pensions was announced for government employees. The salaries of armed forces personnel would also be increased by 25pc, including a special relief allowance in recognition of their recent heroic performance in response to Indian aggression, the finance minister said.
At the same time, the government introduced a generous tax relief and incentives for the construction sector, including access to cheaper mortgage financing, in a bid to revive large-scale manufacturing, which has been contracting for the past three years due to unprecedented increases in energy and borrowing costs. To this end, the finance minister announced a reduction in the withholding tax on the purchase of real estate from 4pc to 2.5pc. The next two current withholding tax rates of 3.5pc and 3pc will also be reduced to 2pc and 1.5pc respectively.
Additionally, a 7pc federal excise duty imposed last year on the transfer of commercial properties, plots and houses has also been proposed to be abolished.
As a new initiative, the budget includes a tax credit on mortgages for homes of up to 10 marla (250 square yards) and flats of up to 2,000 square feet. This is in addition to a new scheme aimed at promoting mortgage financing. The finance minister also announced a reduction in stamp duty on property purchases in Islamabad Capital Territory, from 4pc to 1pc, and expressed hope that provincial governments would follow suit by reducing heavy taxation on immovable property.
The government also succeeded in persuading the IMF to exempt fertilisers and insecticides from taxation for the current year, in an effort to position agriculture as the engine of economic growth.
Tightening the net
On the other hand, the finance minister announced an increase in the tax rate on interest income from 15pc to 20pc, a move that may discourage savings. However, he clarified that this would not apply to small savers or investments in national saving schemes.
Similarly, digital marketplaces and online businesses are to be brought into the tax net through courier companies, it was announced. The minister also announced a 5pc income tax on pensions exceeding Rs10m per annum for pensioners under the age of 70. In a move to promote a cashless economy, non-filers will now be subject to a 1pc advance tax on cash withdrawals, up from the existing 0.6pc. Taxpaying businesses will be discouraged from making cash sales exceeding Rs200,000. Additional measures have also been introduced to encourage online transactions and digital payments.
https://www.dawn.com/news/card/1916314
Strict steps will be taken against non-filers. Only taxpayers who submit their wealth statements will be allowed to undertake large financial transactions, such as the purchase of vehicles, immovable properties, securities, mutual funds, or the opening of certain bank accounts.
Tightening the noose around unregistered traders, the finance minister proposed the freezing of bank accounts, restrictions on property transfers, and the sealing of business premises in cases of serious violations of sales tax laws, with the involvement of trade bodies. In the same vein, he also announced a notional 0.5pc reduction in the super tax for corporate firms with annual incomes between Rs200m and Rs500m.
Improved tax collection
The finance minister noted a rise in the tax-to-GDP ratio, which has historically been one of the weakest aspects of Pakistan’s economy, from 8.8pc in June 2024 to 10.3pc in the first nine months of the current year. This figure is projected to reach 10.4pc by June 30, 2025. Including non-tax revenue, the federal tax-to-GDP ratio has improved to 11.6pc, representing an increase of 1.2 percentage points, up from 0.8 percentage points last year. The consolidated tax-to-GDP ratio, the finance minister added, has reached 12.3pc, including a 0.7pc contribution from the provinces. “The 1.6pc of GDP increase in FBR revenue is not only the highest in Pakistan’s history, but is also rarely seen anywhere else in the world in recent times,” the minister boasted.
Balancing the budget
The government has set the non-tax revenue target for the next year at Rs5.15tr, slightly higher than the current year’s Rs4.9tr. This brings the total gross federal revenue (FBR plus non-tax) to Rs19.28tr, up from the current year’s original budget target of Rs17.8tr, which was later revised down to Rs16.8tr. After transferring Rs8.2tr to the provinces, the net federal revenue is estimated to be Rs11.07tr for the next year, compared to Rs9.8tr this year. This leaves a projected federal deficit of Rs6.5tr, a reduction from the current year’s budgeted Rs8.5tr, which was later revised to Rs7.44tr.
Subsidy allocations have been reduced by 14pc to Rs1.19tr for the next year, down from Rs1.38tr in the current year. This is primarily due to a 13pc (Rs154bn) cut in power sector subsidies. The tariff differential subsidy for ex-Wapda distribution companies has been reduced by 9.7pc (Rs27bn) to Rs249bn, from Rs276bn this year. Meanwhile, the tariff subsidy for K-Electric has been cut by 28pc (Rs49bn), to Rs125bn from Rs174bn. An even larger reduction has been applied to the tariff subsidy for Azad Jammu and Kashmir, which has been reduced to Rs74bn from Rs108bn, reflecting a cut of 31.5pc.
The major non-tax revenue item is expected to be the petroleum levy on POL products, projected at Rs1.47tr, which is a 26pc increase from the current year’s Rs1.16tr. An even larger contribution is anticipated from State Bank of Pakistan profits, estimated at Rs2.4tr for the next year, though this marks a slight decline from Rs2.6tr this year.
The debt servicing cost for next year has been estimated at Rs8.2tr, representing an 8pc decline from actual repayments of Rs8.95tr, and 16pc lower than the original budget estimate of Rs9.78tr. Pension expenditure is expected to rise by around 4pc, reaching Rs1.06tr, up from Rs1.01tr this year. Military pensions are projected to grow by 12pc to Rs742bn, compared to a 10pc increase in civil pensions, which are expected to reach Rs243bn.
As a result, total current expenditure has been set at Rs16.29tr for the next year, slightly below this year’s figure of Rs16.39tr.
Published in Dawn, June 11th, 2025
Pakistan News
In fiery presser, ISPR DG terms Imran Khan ‘mentally ill, national security threat’
“His ego and desires have grown to such an extent that he says if not me, then nothing,” says Lt Gen Chaudhry
Inter-Services Public Relations (ISPR) Director General Lt Gen Ahmed Sharif Chaudhry on Friday castigated Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan and his party’s “anti-army’s rhetoric”, terming him a “mentally ill person, whose conduct had become a “serious national security threat”.
Addressing an over two-hour-long press conference in Rawalpindi, the military’s spokesperson slammed the former prime minister for working with “external elements, spreading disinformation, provoking unrest and persistently targeting the armed forces”.
The ISPR chief said today’s briefing was aimed at outlining internal national security challenges, saying that nothing is above the state of Pakistan.
Without naming anyone, Lt Gen Chaudry referred to the jailed PTI founder saying: “His ego and desires have grown to such an extent that he says if not me, then nothing.”
Describing what he called a “delusional mindset” of a “person captive of his own thoughts,” Lt Gen Chaudhry said that the narrative promoted by a particular political figure has “evolved into a national security threat”.
The ISPR DG said that anyone who attacks the armed forces or its leadership is effectively “creating space for another army”.
Lt Gen Chaudhry asserted that the PTI founder keeps the Constitution, the law and established rules aside while promoting this narrative.
He said that the PTI founder sends a narrative against the military and its leadership whenever a meeting is held at Adiala jail.
PTI founder ‘mentally ill’
Addressing the presser, the ISPR DG slammed Imran for “placing personal ego above national interest and of repeatedly promoting an anti-Pakistan, anti-army narrative”.
“This mentally ill individual tweeted two days ago. He believes nothing exists beyond him — not even Pakistan.”
“We respect Pakistan’s political leadership but keep the army away from your politics,” the military’s spokesperson said, adding: “We will not allow anyone to create a rift between Pakistan’s army and the people”.
Lt Gen Chaudhry said Imran had promoted a “scientific system” of coordinated troll activity, driven narratives through his own social media accounts, and repeatedly likened himself to Sheikh Mujibur Rahman.
Indian, Afghan and some international media, he said, amplified his messaging, with troll networks abroad boosting content in synchronised cycles.
According to the ISPR DG, the former premier has now become a national security threat and is working in coordination with external elements.
Giving another recent example, the general said this individual had claimed that anyone from his own party who visited the National Defence University (NDU) would be a traitor. “According to his logic, anyone who goes to ISPR is also a traitor,” he added.
Noting that the freedom of expression is allowed under Article 19 of the Constitution, the ISPR DG said that it carries certain restrictions with it as well and does not permit anyone to speak against the state and national security.
Lt Gen Chaudhry said the “mentally disturbed individual” had recently posted a tweet and asked his supporters to target military leadership that stood firm against an enemy eight times stronger in the Operation Bunyan-um-Marsoos.
“There is an entire science behind this,” the ISPR DG said.
Referring to the PTI founder, Lt Gen Chaudhary said: “Who are you? Whose language are you speaking? What do you think of yourself?”
The DG ISPR said that the public had already witnessed the “symptoms of a disturbed mindset”.
He asked whether the individual had not previously instigated the May 9 attack on the General Headquarters (GHQ).
“This person believes that anyone serving in the Pakistan Army is a traitor,” the DG ISPR asserted, adding that this person considers himself to be the only one who is right and believes everyone else is wrong.
He questioned why this individual did not speak about Pakistan’s significant issues.
Vows response to attack on army
The ISPR DG said that the PTI founder first creates a narrative aimed at halting remittances to push Pakistan toward default, and then calls for targeting the army’s leadership, which successfully stood firm against India during the four-day war in May.
“When you ask his party, they say that we do not know where the narrative comes from,” the military’s spokesperson said.
“A person who thinks that nothing is above his own self, even Pakistan, has [in fact] become a national security threat,” the general warned, saying that “this person is working with external elements”.
“If someone attacks the Pakistan Army, then we will also respond.”
Referring to the social media post concerned, he shed light on how the Indian media and troll accounts, operating from outside Pakistan, pick up on this narrative.
“Accounts come after the tweet in a sequential manner [….] The original narrative was given by this mental patient by tweeting.”
“Uzma Khan is sitting on the Indian media and telling PTI to attack,” Lt Gen Chaudhry highlighted.
The ISPR DG cautioned that anyone attacking Pakistan’s Armed Forces “under their own political mindset” should expect a response.
Reaffirming the institution’s stance, he said, “We are the armed forces of Pakistan and do not represent any political ideology.”
CDF notification propaganda
The ISPR DG described the propaganda surrounding the CDF notification as “a flood of lies,” questioning what kind of politics of freedom of expression this represented.
“Please grow up. Talk about real issues,” he said, adding that even routine military news was being used to generate propaganda.
Continuing his remarks, the ISPR DG said that Afghan social media was also actively involved in amplifying the narrative of the PTI founder.
“Three days ago, they repeated their narrative of dialogue with the terrorists. They pushed the line that intelligence-based operations should not be carried out,” he added.
“By the logic of this mentally disturbed individual, if India had attacked, he would have walked around with a begging bowl saying, ‘Come, let’s talk.'”
The ISPR DG noted that the PTI founder was the same person “who suggested opening an office for khawarij in Peshawar”.
“This obsession with talks is not new for him,” the DG ISPR said, adding that the former premier provokes people to stand against operations.
“We are absolutely clear that his politics or his personality cannot be above the state,” he stressed.
“This is a mental disorder — this is a terror-crime nexus. It involves drugs, NCP, kidnapping for ransom and several other things.”
The ISPR DG cautioned that anyone who stands against the political terror-crime nexus could face orchestrated attacks.
‘Terrorism and extremism’
Lt Gen Chaudhry reaffirmed that the Pakistan Army stood between the public and “khawarij terrorists”.
While Pakistan had never refused dialogue, he said talks with violent extremists were out of the question. Citing Paigham-e-Pakistan, he reminded that the country’s top Ulema had rejected extremism.
He said some individuals had revived the narrative of “talking to the khawarij” only three days earlier.
The DG ISPR criticised those opposing security operations, saying the Khyber Pakhtunkhwa police were sacrificing their lives daily.
He questioned why some urged the halting of intelligence-based operations, stressing that terrorism would not end in a day and required political will. He said those advancing such arguments worked against the unanimous national narrative.
The ISPR DG said that by December 3, as many as 1.8 million illegal Afghan migrants had been repatriated under government policy.
‘State is supreme’
Emphasising constitutional hierarchy, the ISPR DG said the state — and the elected government — were supreme, not individuals or institutions. The army, he said, was an institution functioning under civilian authority.
Freedom of speech under Article 19 had limits, he noted, and could not be exercised against national security.
Responding to criticism of military capability and governance, he said the army had proved itself in battle, and that the country had not defaulted despite predictions.
Calling the current discourse a “disease — a mental disorder”, he said the business of lies and deception would no longer continue.
He dismissed online attacks, referring to them as “a barking dog — do not worry about it”.
“We stand on the side of truth, and we will remain on the side of truth,” he added.
‘Media must act responsibly’
Lt Gen Chaudhry urged the media to act responsibly, “call truth truth and falsehood false”, and focus on real national issues.
Pakistan, he said, had let billions of dollars’ worth of floodwater flow into the sea, maintained severely inadequate water storage and faced population pressures, requiring serious debate on food security.
He said the country had “politicised everything — even the national narrative”.
He said questions on governance triggered attacks from the “political-crime nexus”.
Criticising political leaders who kept their own children abroad, he urged them to send their children to the army.
Governor’s rule, he noted, was solely the government’s decision. “We are clear that no individual or politics is greater than the state.”
Concluding the briefing, Lt Gen Chaudhry said the army would not allow rifts between the institution and the public. He warned political actors to stop dragging the military into their disputes, adding that attacks on the army would draw responses.
“It is clear as daylight: we will protect the state,” he said. Calling for maturity, he said: “We are all Bunyan-um-Marsoos — a solid, united structure. Pakistan will remain, and the Pakistan Army will remain.”
News Taken From Geo News
https://www.geo.tv/latest/637487-ispr-dg-lt-gen-chaudhry-to-address-press-conference-today
Pakistan News
Pakistani Delegates of the Model United Nations International Visited the Embassy
Paris (Imran Y. CHOUDHRY):- A group of Pakistani delegates of the Model United Nations (MUN) International being held in Paris visited the Embassy today for an interactive briefing session. They were briefed on Pakistan’s priorities in international organizations especially those based in Paris.

Addressing the participants, Ambassador Madam Mumtaz Zahra Baloch underscored Pakistan’s commitment to multilateralism, international law, and peaceful settlement of disputes.

She also briefed them on the constructive role played by Pakistan in advancing the mandate of UNESCO during its tenure as a Vice-Chair of the Executive Board (2023–2025) and championing the priorities of developing countries.
Pakistan News
What new changes has the National Assembly made to the 27th Constitutional Amendment bill?
The National Assembly on Wednesday passed the 27th Constitutional Amendment Bill during a ruckus-marred session attended by political heavyweights, including Prime Minister Shehbaz Sharif, PML-N President Nawaz Sharif and PPP Chairman Bilawal Bhutto-Zardari.
The bill was passed by a two-way voting process — voting by division and clause-by-clause voting. Presented in the house for voting by Law Minister Azam Nazeer Tarar, the bill will now be referred back to the Senate for the new amendments to be debated upon again and then will be passed by the upper house.
During the session, Tarar presented a list of amendments to the bill, while also omitting some of the bill’s clauses.
From the law minister’s speech in the National Assembly, the amendments were promulgated mainly to incorporate the newly setup Federal Constitutional Court (FCC) in the scheme of the Constitution and to provide clarity regarding the incumbent and future chief justice of Pakistan (CJP) since the new constitutional court means it will have its own chief justice (CJFCC), along with the chief justice of the Supreme Court (CJSC).
Amendments related to Federal Constitutional Court
Substitution of new Clause 2
The first change pertained to Clause 2 of the 27th Amendment Bill, 2025, which dealt with a change to Article 10(4)(1) of the Constitution (safeguards as to arrest and detention). The relevant section currently says that the CJP will form the review board in a case of someone detained under a federal law.
The amendment sought to insert the words “Supreme Court of” in front of the “chief justice of” to now show that the CJSC would be the one to form the board.
However, the new Clause 2 as per the amendments deals with changes to Article 6’s (high treason) clause 2A, which reads as follows:
An act of high treason mentioned in clause (1) or clause (2) shall not be validated by any court, including the SC and a high court.
In the latest amendment, it was stated that after the word “the”, the words “Federal Constitutional Court” and a comma would be inserted, thus adding the FCC to the list of courts that cannot ratify any act of high treason and placing it before the SC in the listing.
Amendments related to Supreme Court, its chief justice and CJP
Insertion of Clause 2A
Meanwhile, the previous Clause 2 of the bill would now be labelled as Clause 2A.
As explained before, the CJSC will now be the one to form the review board for the case of someone detained under a federal law.
Substitution of Clause 23
Article 176 that deals with the makeup of the SC currently says: “The Supreme Court shall consist of a chief justice to be known as the chief justice of Pakistan and so many other Judges as may be determined by Act of [Majlis-e-Shoora (Parliament)] or, until so determined, as may be fixed by the president.”
The original Clause 23 sought to insert the words “of Supreme Court” after the second mention of “justice”, thus meaning that the apex court would comprise its own chief justice — who would not necessarily be the CJP.
However, the law minister said in his NA speech that confusion had been created about the continuity of the CJP, thus the following new amendment was proposed that includes the original Clause 23 but also adds the following part to the full definition at the end of Article 176:
“For the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely: ‘Provided that and notwithstanding anything contained in the Constitution, the incumbent chief justice shall be and continue to be known as the chief justice of Pakistan during his term in office’.”
CJP Yahya Afridi will thus continue to be the country’s chief justice until the end of his term.
Amendment of Clause 56
In the bill, an amendment to Clause 1 of Article 260 (definitions) was proposed, specifically for the definition of the chief justice. The article currently states:
“Chief justice”, in relation to the Supreme Court or a high court, includes the judge for the time being acting as chief justice of the court.
The change (subclause ‘a’ of Clause 56) proposed in the bill sought to add the words “Federal Constitutional Court” to clauses and sub-clauses of Article 260 to incorporate the new court in the framework of the Constitution.
Today’s latest amendment proposed the addition of the following subclause to Clause 56’s subclause ‘a’:
“Chief justice of Pakistan” means the senior amongst the chief justice of the Federal Constitutional Court and the chief justice of Supreme Court.“
Thus, after CJP Afridi’s term comes to an end, the future CJP will be the senior-most judge from the chief justices of the FCC and SC.
Omissions
Omission of Clause 4
Some of the proposed changes in the bill were omitted during the reading, one of which was Clause 4 of the bill.
Clause 4 would amend Article 42 of the Constitution, which reads as follows:
Before entering upon office, the president shall make before the chief justice of Pakistan oath in the form set out in the Third Schedule.
The proposed amendment would have seen the word “Pakistan” replaced with “the Federal Constitutional Court”.
Omission of Clause 19
Clause 19 of the bill proposed an amendment to Article 168 of the Constitution, which mandates that there will be an auditor-general who is appointed by the president. There was meant to be an amendment to Clause 2 of Article 168, which reads as follows:
Before entering upon office, the auditor-general shall make before the chief justice of Pakistan oath in the form set out in the Third Schedule.
The amendment in the bill would insert the words “Supreme Court of” after the words “chief justice of”.
Omission of Clause 51
Clause 51 of the bill proposed an amendment to Article 214 of the Constitution, which states that the chief election commissioner must swear an oath to the chief justice before assuming office, as follows:
Before entering upon office, the commissioner shall make before the chief justice of Pakistan [and a member of the Election Commission shall make before the commissioner] oath in the form set-out in the Third Schedule
The amendment was to replace the word “Pakistan” in the Article with the words “Federal Constitutional Court”.
Omission of Clause 55
Clause 55 of the bill proposed an amendment to Clause 2 of Article 255 (oath of office), which states that if someone cannot take the oath of office before “a specified person”, the chief justice can swear them in, as follows:
Where, under the Constitution, an oath is required to be made before a specified person and, for any reason, it is impracticable for the oath to be made before that person, it may be made before such other person as may be nominated by 3 [the chief justice of a high court, in case of a province and by the chief justice of Pakistan, in all other cases]
The bill proposed an amendment to the second clause of Article 255, substituting the word “Pakistan” with the words “Federal Constitutional Court”.
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