Author: Admin

Rs133.4bn Allocated for Hydropower and Water Projects in FY2025-26

Admin
Dasu-Hydropower1

ISLAMABAD: The federal government has earmarked Rs133.4 billion for hydropower and water sector development under the Public Sector Development Programme (PSDP) 2025-26, aiming to bolster energy generation and improve water infrastructure across the country. Key allocations include Rs20 billion for the Dasu Hydropower Project (Stage-I) and Rs25 billion for the Diamer Basha Dam, with an additional Rs7.787 billion set aside for land acquisition and resettlement. The Mohmand Dam Project (800MW) receives a substantial Rs35.724 billion, reflecting its national priority status. Other major hydropower allocations include Rs3.4 billion for the Tarbela…

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Govt Slashes Subsidies by Rs180bn to Rs1.18tr for FY2025-26; Power Sector Gets Lion’s Share

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power-sector

ISLAMABAD: In a bid to contain fiscal pressures, the federal government has trimmed the total subsidy allocation to Rs1.186 trillion for the fiscal year 2025-26—down by Rs180 billion from the revised estimate of Rs1.378 trillion in the current year. Of the total, Rs1.036 trillion—nearly 87%—is earmarked for the power sector, reflecting continued support to electricity consumers despite fiscal tightening. This includes Rs249 billion for Inter-Disco tariff differential, Rs125 billion for K-Electric’s tariff support, and Rs95 billion for payments to Independent Power Producers (IPPs). Notably, Rs40 billion has been allocated for…

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Petroleum Carbon Levy Introduced as Pakistan Ups Climate Budget to 8.2pc

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petrol-price

ISLAMABAD: In a major policy shift to fund climate adaptation and discourage fossil fuel use, the federal government has proposed a Rs2.5 per liter carbon levy on petrol, high-speed diesel, and furnace oil in the FY2025-26 budget. This levy will double to Rs5 per litre in the following fiscal year. Additionally, a petroleum levy on furnace oil will also be enforced. This new carbon pricing measure is part of Pakistan’s broader climate strategy, reflected in the allocation of 8.2 per cent of the development budget and 6.9 per cent of…

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Budget FY26: Relief for Salaried Class, New Taxes on Solar Panels, E-Commerce, and Property

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Budget-2025

Finance Minister Muhammad Aurangzeb unveiled the federal budget for FY2025-26, aiming for 4.2% GDP growth and setting a record tax collection target of Rs14,131 billion. The budget offers significant relief for Pakistan’s salaried class while expanding the tax net to include sectors like solar energy, e-commerce, and property. Salaried Class Relief Aurangzeb announced revised income tax slabs with reduced rates across all tiers: A 10% salary hike was also announced for government employees (Grade 1–22). The minister emphasized that these measures aim to retain talent and prevent brain drain. Pension…

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Budget 2025–26: Austerity Budget Offers Modest Relief Amid Tight Fiscal Goals

Admin
2025-2026

ISLAMABAD: In line with the International Monetary Fund’s (IMF) fiscal consolidation demands, Finance Minister Muhammad Aurangzeb on Tuesday presented a tightly constrained federal budget for FY2025–26. Despite stringent measures, the government extended limited relief to salaried individuals and offered targeted incentives to revive the struggling industrial, real estate, and construction sectors. While some concessions were announced, new burdens were also introduced. These include a carbon levy of Rs2.5 per litre on petrol, diesel, and furnace oil — set to double in FY2026–27 — a 5% tax on pensions exceeding Rs10…

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