Budget proposes major changes as the federal government gets ready to present the new fiscal plan on 12 June, two days later than the original 10 June date. According to budget-related updates, petroleum levy collections hit Rs 1.43 trillion between July and May, underscoring the government’s continued reliance on fuel-based taxation to meet revenue targets.
For salaried individuals, there’s potential relief on the table. The government is considering tax relief for those earning between Rs 200,000 to Rs 300,000 per month, a move aimed at easing pressure on the middle class amid rising living costs. Another key proposal is raising the Rs 5 million remittance cap, which could benefit overseas Pakistanis sending money home.
The budget also signals the introduction of crypto taxation for the first time, bringing digital assets under the tax net as Pakistan adapts to global financial trends. On the agriculture side, an expected Rs 20 billion fertilizer subsidy is proposed to clear gas arrears and support production, helping farmers manage input costs.
However, economists are warning that higher indirect taxes and reduced subsidies could push inflation and energy prices higher, adding strain to households already dealing with cost pressures. Another contentious proposal is an 18% GST on solar equipment, which is facing strong opposition from the Pakistan Solar Association, Lahore Tax Bar Association, and solar consumers who argue it will slow down the shift to renewable energy.
Overall, the budget balances revenue generation through levies and new taxes with targeted relief measures, though its impact on inflation and clean energy adoption remains a key debate ahead of presentation.
