Government reaffirms commitment to education and clean energy in upcoming fiscal policies
ISLAMABAD: In a bid to provide relief to working professionals and support sustainable energy initiatives, the Federal Board of Revenue (FBR) has unveiled preliminary budget measures indicating a focus on easing financial pressures without introducing new taxes on key sectors.
FBR Chairman Rashid Mahmood Langrial revealed on Thursday that schoolteachers and academic professionals will benefit from a 25% rebate on income tax, starting in the new fiscal year. “This step reflects our acknowledgment of the invaluable role educators play, especially as they grapple with rising living expenses,” he told reporters. However, he noted that authorities are still deliberating whether the relief will be applied as an in-year adjustment or offered as a refund mechanism.
Addressing the growing concerns around clean energy investment, Langrial clarified that no additional taxes are being considered on the import of solar panels. “There is no proposal to raise existing duties on solar technology,” he confirmed, in response to speculation surrounding possible IMF-driven fiscal tightening.
Langrial further explained that while the government is reviewing tax exemptions across various sectors, sectors such as education and renewable energy remain a priority due to their long-term economic and social benefits. “Our tax strategy aims to enhance revenue without undermining development goals,” he emphasized.
The FBR chairman also pointed out that the Senate Standing Committee on Finance has approved the Income Tax Second Amendment Bill 2025, clearing the path for broader fiscal reforms aimed at improving revenue collection while shielding vulnerable groups.
Negotiations with the International Monetary Fund (IMF) are ongoing, particularly concerning fiscal relief for the salaried class. Langrial mentioned that further concessions for key industries are under discussion as part of the budget framework.
Just a day earlier, the IMF had recommended eliminating all existing tax exemptions, including those benefiting solar panel imports, as part of its push for a more uniform taxation system. Despite the IMF’s stance, the government appears to be taking a more cautious approach to protect critical development areas.
On the budget calendar, Finance Secretary Imdadullah Bosal confirmed that Pakistan’s federal budget for 2025-26 will be presented on June 10. Speaking informally with journalists, he said that while the dates for the Annual Plan Coordination Committee (APCC) and National Economic Council (NEC) meetings are still being finalized, the budget timeline is firm.
Later on social media platform X, Bosal reaffirmed the schedule: “As communicated earlier, the upcoming Federal Budget FY26 is on schedule to be announced on June 10, 2025. Similarly, the Pakistan Economic Survey FY25 will be released on June 9.”
