ISLAMABAD: President Asif Ali Zardari has signed the Finance Act 2026-27, completing the legislative process and paving the way for Pakistan’s federal budget to come into force from July 1, 2026.
Following the President’s assent, the Finance Act will be forwarded to the Printing Corporation of Pakistan for publication in the Official Gazette. Once the gazette notification is issued, the Finance Act 2026-27 will become legally effective, implementing all budgetary and taxation measures for the new fiscal year.
According to Ministry of Finance sources, the implementation of the Rs. 18.71 trillion Federal Budget for FY2026-27 will officially begin on July 1, marking the start of the new financial year.
The Finance Act introduces several key fiscal measures, including revised income tax rates, changes in customs duties, sales tax amendments, and other taxation reforms approved by Parliament. All tax and duty revisions will become applicable from the same date.
The Act also provides a 7 percent increase in salaries and pensions for federal government employees and pensioners. The revised compensation structure, along with all other approved fiscal measures, will be implemented from July 1, 2026.
The enactment of the Finance Act ensures the government’s budgetary proposals, revenue measures, and public spending plans are now set to be enforced as Pakistan enters the 2026-27 financial year.
