ISLAMABAD: The National Assembly on Thursday passed the Rs17.573 trillion federal budget for fiscal year 2025–26, which includes significant income tax exemptions for more than 100 institutions across the country.
According to the Finance Bill 2025–26, the exemptions are extended to entities registered as trusts, foundations, or non-profit organizations, with the aim of supporting key sectors such as education, healthcare, social welfare, and national development.
One notable provision grants income tax exemption on pensions received by former presidents or their widows.
Key Institutions Granted Tax-Exempt Status
The following organizations are among those listed for income tax exemption:
- Fauji Foundation, Army Welfare Trust, FBR Foundation, WAPDA, Pakistan Agricultural Research Council (PARC)
- Prime Minister’s Special Funds, SECP, Privatization Commission
- Aga Khan Development Network, Karandaaz Pakistan, Al-Shifa Trust, Al-Shifa Eye Trust
- Ghulam Ishaq Khan Institute (GIKI), Lahore University of Management Sciences (LUMS), ZABIST, COMSATS University
- Akhuwat Foundation, Al-Khidmat Foundation, Businessman Hospital Trust, Dawat-e-Islami Trust
- Shaukat Khanum Memorial Trust, Indus Hospital
- Pakistan Bar Council and all four provincial bar councils
- Supreme Court Dams Fund, Prime Minister’s Flood Relief Fund
Budget Approval Process
The Finance Bill was passed by a majority vote during the ongoing National Assembly session chaired by Speaker Sardar Ayaz Sadiq. Clause-by-clause approval was carried out, with all opposition-led cut motions being rejected.
Prior to the vote, the federal cabinet, in a meeting chaired by Prime Minister Shehbaz Sharif, gave its nod to the amended Finance Bill 2025–26.
Following the bill’s passage, the session was adjourned until 11:00 AM the next day.
