The National Assembly on Thursday approved the Rs17.573 trillion federal budget for the fiscal year 2025–26, which includes income tax exemptions for over 106 institutions across the country.
The exemptions were granted to organizations that are registered as trusts, foundations, or non-profit entities, and are aimed at supporting sectors such as education, healthcare, welfare, and national development.
One key aspect is the tax exemption for pensions of former presidents or their widows, according to the finance bill.
Key institutions granted tax-exempt status
According to the approved Finance Bill 2025-26, the following institutions will now be exempt from income tax:
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FBR Foundation, WAPDA, Pakistan Agricultural Research Council (PARC)
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Prime Minister’s Special Funds, SECP, Privatization Commission
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Fauji Foundation, Army Welfare Trust, Aga Khan Development Network
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Karandaaz Pakistan, Al-Shifa Trust, Al-Shifa Eye Trust
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Ghulam Ishaq Khan Institute (GIKI), Lahore University of Management Sciences (LUMS)
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Akhuwat Foundation, Al-Khidmat Foundation
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Businessman Hospital Trust, Dawat-e-Islami Trust
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Pakistan Bar Council and all four provincial bar councils
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Shaukat Khanum Memorial Trust, Indus Hospital
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ZABIST University, COMSATS University
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Supreme Court Dams Fund, Prime Minister’s Flood Relief Fund
The National Assembly has approved the budget for the next financial year 2025-26. The Finance Bill 2025 has been approved by a majority vote in the ongoing National Assembly session chaired by Speaker Sardar Ayaz Sadiq.
Also Read: National Assembly approves budget 2025-26 by majority vote
After the approval of the Finance Bill, the National Assembly session was adjourned until 11am tomorrow.
During the session, clause-wise approval was given by a majority vote, while all the opposition’s cut motions were rejected.
Earlier, a federal cabinet meeting was held under the chairmanship of Prime Minister Shehbaz Sharif, wherein the cabinet approved the Finance Bill 2025-26 with amendments.
