Parliament passes finance bill 2026

June 23, 2026 (MLN): Pakistan's National Assembly on Tuesday passed the Finance Bill 2026, giving effect to the federal budget for fiscal year 2026-27 worth Rs18.77tr, as opposition lawmakers staged a walkout amid sharp exchanges over democracy, governance and the role of state institutions.

The budget was passed after treasury members voted down amendments proposed by opposition parties. Lawmakers backed by the Pakistan Tehreek-e-Insaf (PTI) and several allied groups left the chamber before the final vote, while members of the Jamiat Ulema-e-Islam remained present and moved a number of amendments.

The approved budget projects total federal expenditures of Rs18.77tr and sets a tax collection target of Rs15.26tr for the Federal Board of Revenue (FBR).

Non-tax revenues are estimated at Rs5.33tr, while the fiscal deficit is targeted at Rs5.22tr, equivalent to 3.6% of gross domestic product.

The government has also committed to achieving a primary surplus of Rs2.82tr under its reform program with the International Monetary Fund.

Defense spending was allocated nearly Rs3tr, pension expenditures were set at Rs1.16tr, and the federal Public Sector Development Programme was approved at Rs1tr.

The finance bill includes revisions to income tax rates for salaried individuals, changes in the taxation of income earned through social media platforms, and amendments affecting property transactions. Revised duties on imported and electric vehicles were also approved, effective July 1.

Opposition Leader Mahmood Khan Achakzai criticized the government's handling of parliamentary affairs, accusing authorities of weakening democratic institutions and deviating from constitutional principles.

"Pakistan will only survive as long as it provides justice to its people," he told the assembly, urging the government to initiate political dialogue and strengthen the role of parliament.

Prime Minister Shehbaz Sharif rejected opposition claims regarding the legitimacy of the government, saying any concerns over electoral processes should be examined comprehensively, including both the 2018 and 2024 general elections.

Shehbaz Sharif also pointed to Pakistan's recent diplomatic engagement involving Iran and the United States, saying efforts facilitated by Islamabad had helped create conditions for a ceasefire and could contribute to broader peace negotiations.

National Assembly Speaker Sardar Ayaz Sadiq defended the conduct of parliamentary proceedings, dismissing allegations that the chair had violated constitutional provisions, and said parliament would not permit statements directed against the constitution or state institutions during assembly sessions.

With the budget process now complete, the focus shifts from policy formulation to implementation delivering reforms, strengthening competitiveness, expanding exports, attracting investment, creating jobs and improving lives.

The government reaffirmed its commitment to expediting reforms, attracting investments, fueling exports and creating more jobs as Pakistan strengthens its economic foundations at home and advances its standing abroad.

Appreciation was also extended to the business community, including chambers of commerce, industry and trade associations, business councils, exporters, investors and market participants, whose valuable feedback, constructive engagement and policy inputs helped enrich the budget process.

Khurram Schehzad, who shared the development on his official X account, expressed gratitude for having played a small part alongside an exceptional team under the able leadership of the Finance Minister, adding that the journey from stabilization to sustainable growth continues.

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