Explore Pakistan Budget 2025–26 increase 25% Salary and Pention the federal budget schedule with key dates, economic performance highlights, GDP growth, tax revenue trends, and a 25% salary and pension increase. Stay informed on upcoming financial reforms and Assembly debates.
The National Assembly of Pakistan has officially released the detailed schedule for the upcoming Federal Budget 2025-26, marking one of the most anticipated fiscal events of the year. The budget will be formally presented on June 10, 2025, as confirmed by the office of the Speaker of the National Assembly, Sardar Ayaz Sadiq. With critical legislative actions, policy debates, and fiscal decision-making on the horizon, the session promises to shape Pakistan’s economic direction for the next financial year.
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Budget 2025-26: National Assembly Schedule
Speaker Sardar Ayaz Sadiq has finalized a detailed parliamentary calendar that outlines the National Assembly’s activities concerning the Federal Budget 2025-26. The schedule allows for comprehensive debate, scrutiny, and voting on key financial matters.
Key Dates for Budget 2025-26:
- June 10: Budget presentation in the National Assembly.
- June 11–12: No Assembly sessions.
- June 13–21: General debate on the federal budget.
- June 22: Break (no session).
- June 23: Discussion on necessary expenditures.
- June 24–25: Voting on demands, grants, and cut motions.
- June 26: Debate and passage of the Finance Bill 2025-26.
- June 27: Final session to approve supplementary grants and other budget matters.
The speaker’s office has also clarified that any changes to this schedule will require formal approval from the speaker.
Key Budgetary Highlights: Federal Budget 2025–26
25% Increase in Salaries and Pensions
One of the most significant announcements expected in the 2025-26 federal budget is the 25% increase in salaries and pensions for government employees and pensioners. This move is expected to provide financial relief amid rising living costs and aims to boost domestic consumption by increasing disposable income.
- Salaries of federal government employees in all basic pay scales (BPS) will be increased by 25%.
- Pensions for retired employees will also be raised by 25%, benefiting millions of pensioners nationwide.
This substantial increment is likely to have a positive ripple effect across the economy, particularly in the retail, healthcare, and housing sectors, which are sensitive to income changes.
Economic Performance Review: Mixed Outcomes for FY 2024-25
According to preliminary documents and data from the upcoming National Economic Survey, the federal government missed several economic targets, even though performance improved compared to the previous fiscal year.
Key Economic Indicators
| Indicator | Target | Actual | Status |
|---|---|---|---|
| GDP Growth | 3.6% | 2.7% | ❌ Missed |
| Inflation Rate | 12% | 5% | ✅ Beat Expectations |
| Per Capita Income | Rs543,968 | Rs509,174 | ❌ Missed |
| Indirect Tax Revenue | Rs7,799 billion | Rs8,393 billion | ✅ Surpassed |
| Total Revenue | – | Rs13,367 billion | ✅ Up 36.7% |
| Tax-to-GDP Ratio | 6% | 8% | ✅ Improved |
| Private Sector Borrowing | Rs294 billion | Rs870 billion | ✅ Increased |
The GDP growth shortfall was a matter of concern, with an actual growth rate of 2.7%, well below the projected 3.6%. However, the inflation rate stood at just 5%, significantly lower than the 12% target, indicating better control over price volatility.
Despite setbacks in income and agricultural output, tax collection and borrowing surged, reflecting stronger fiscal discipline and greater confidence from the private sector.
Agricultural Sector: Underperformance and Production Declines
The agricultural sector, a backbone of Pakistan’s economy, showed disappointing results during FY 2024-25.
Major Crop Production Declines
| Crop | Growth/Decline |
|---|---|
| Cotton | -30.7% |
| Maize | -15.4% |
| Sugarcane | -3.9% |
| Paddy (Rice) | -1.4% |
| Wheat | -8.9% |
Major crops collectively declined by 13.5%, worse than last year’s 4.5% drop. Adverse weather, pest attacks, and supply chain issues contributed to poor performance.
Minor Crops: A Silver Lining
On the positive side, minor crops grew by 4.8%, beating the target of 4.3%. Sectors such as vegetables, fruits, spices, oilseeds, and fodder saw noticeable improvements due to increased demand and better farming practices.
Industrial Sector: Modest Recovery with Mixed Outcomes:Budget 2025–26
The industrial sector showed a relatively balanced performance, recording an overall growth rate of 4.8%, slightly above its 4.4% target.
Positive Contributors
- Textiles
- Automobiles
- Garments
- Tobacco
- Petroleum Products
These sub-sectors benefitted from export demand and domestic consumption.
Underperformers
- Food Industry
- Chemicals
- Iron & Steel
- Electrical Machinery
- Furniture
Supply chain disruptions, high input costs, and fluctuating demand hampered performance in these industries.
Construction and Utilities: Budget 2025–26
Construction Sector
- Target: 5.5%
- Actual: 6.6%
The construction industry outperformed expectations, driven by housing projects and infrastructure development initiatives under CPEC and provincial government schemes.
Electricity, Gas, and Water Supply
- Target: 2.5%
- Actual: 28.9%
This massive leap was largely due to enhanced generation capacity, new power projects, and better energy management systems.
Services Sector: Budget 2025–26
The services sector recorded 2.9% growth against a 4.1% target. The shortfall is attributed to slower growth in trade, transport, and hospitality.
However, certain sub-sectors performed above expectations:
| Sector | Target | Actual |
|---|---|---|
| Health | 3.2% | 3.7% |
| Education | 3.5% | 4.4% |
| Small Industries | 8.2% | 8.8% |
Private Sector and Fiscal Improvements
The financial sector saw a significant increase in private sector borrowing, which rose from Rs294 billion to Rs870 billion, indicating enhanced business confidence and expansion activity.
Other financial metrics showed marked improvements:
- Total revenue jumped to Rs13,367 billion, a 36.7% increase.
- The tax-to-GDP ratio improved to 8%, up from 6% last year.
- Enhanced collection of indirect taxes, exceeding Rs8,393 billion.
Upcoming Announcement: National Economic Survey
Finance Minister Muhammad Aurangzeb is scheduled to unveil the National Economic Survey 2024-25 on June 10 at 2:30 PM, a day before the full budget presentation. The survey will provide deeper insight into the government’s economic performance and set the stage for upcoming fiscal policies.
Legislative Outlook: What to Expect
The Federal Budget 2025-26 is expected to include:
- Increased allocations for education and healthcare.
- Enhanced social protection programs such as BISP and Ehsaas.
- Subsidies for agriculture and energy sectors.
- Funding for 47 major power projects (Rs104 billion proposed).
- Tax reforms to increase the direct tax base.
- Debt management strategies to handle domestic and foreign liabilities.
Conclusion;Budget 2025–26
The Federal Budget 2025–26 is being presented at a critical juncture for Pakistan’s economy. While notable progress has been made in inflation control, tax collection, and specific industrial sectors, structural challenges persist—especially in agriculture and large-scale manufacturing.
The 25% salary and pension hike is expected to bring relief to millions and boost economic activity. However, sustained growth will require focused reforms, strategic investments, and better governance.
As the budget session unfolds from June 10 to June 27, all eyes will be on how the government balances public welfare with fiscal discipline. Stakeholders from all sectors are advised to stay tuned to developments and participate actively in the democratic process.