Rs. 17.5 Trillion FY26 Budget Sails Through National Assembly

The National Assembly Thursday approved the federal budget for the fiscal year 2025-26, with some amendments to the Finance Bill, despite protest from the opposition. Earlier in the day, the National Assembly began clause-wise approval of the Finance Bill 2025 during a session chaired by Speaker Ayaz Sadiq, with several critical amendments passed by majority vote. Finance Minister Muhammad Aurangzeb moved motions for the approval of the bill, which were accepted despite opposition resistance. Amendments proposed for public consultation on the bill were rejected by a majority. One of the most important approved changes allows for the arrest in cases of sales tax fraud. Offenses now categorized under tax fraud include forgery, tampering with tax amounts, issuing invoices without goods, erasing tax evidence, and submitting false tax returns. Under the revised provisions, individuals attempting to flee abroad or destroy evidence can be arrested. Arrests can only be made if the fraud involves Rs. 50 million or more. Also, approval for arrest must come from a committee comprising Member Operations and Member Legal. Detainees must be presented before a magistrate within 24 hours. Clause No. 3 of the Finance Bill was also passed to legalize a carbon levy of Rs. 2.50 per liter on petroleum products. Separately, amendments to the Salaries and Perks of Members of Parliament Act introduced clauses 4A and 4B. These transfer the authority to determine MP benefits from the Secretariat to the House Committee. The salaries of federal and state ministers will now match those of MPs. An amendment to the Customs Act 1969 was also approved to introduce a cargo tracking system to curb smuggling. The system will electronically monitor imports, exports, and transit cargo.