The Finance Bill for 2025–26, expected to be signed into law by the President today, includes more than 50 tax exemptions aimed at supporting important public, military, and charitable organizations in Pakistan.
Some of the major institutions receiving tax relief include the State Bank of Pakistan (SBP), the Army Welfare Trust (AWT), Fauji Foundation, Water and Power Development Authority (WAPDA), Securities and Exchange Commission of Pakistan (SECP), and the Privatisation Commission. These organizations play a vital role in the country’s economy, defense, and infrastructure development.
International financial organizations such as the International Monetary Fund (IMF), Asian Development Bank (ADB), and Asian Infrastructure Investment Bank (AIIB) will also benefit from these tax exemptions. This is seen as a move to strengthen Pakistan’s relationships with global partners and improve foreign collaboration.
Additionally, several social welfare and development programs have been exempted from taxes. These include funds related to natural disaster relief, COVID-19 emergency response, and educational scholarship programs such as the National Endowment Scholarship for Talent (NEST). Development initiatives under various government departments are also covered.
The aim of these exemptions is to make financial operations easier for institutions that serve the public good. The government hopes this will lead to improved services, better use of resources, and stronger partnerships between the public and private sectors.
By offering these tax breaks, the Finance Bill 2025–26 supports welfare, development, and international cooperation ultimately helping Pakistan achieve more stable and inclusive economic growth.
