The Finance Bill 2025-26 is set to receive presidential assent today, officially introducing more than 50 new tax exemptions that will benefit a wide array of public entities, charitable funds, state institutions, and international lending organizations. This move aims to provide financial relief and support to key sectors and initiatives across Pakistan.
The exemptions cover a diverse range of beneficiaries, reflecting the government’s commitment to various social, economic, and developmental objectives.
Key Beneficiaries of Tax Exemptions
Among the prominent entities and funds granted exemptions are:
- Public and Welfare Funds:
- The Prime Minister’s Special Fund for terrorism victims.
- The National Disaster Risk Management Fund.
- The Prime Minister’s COVID-19 Relief Fund-2020.
- The National Endowment Scholarship for Talent (NEST).
- Chief Minister’s (Punjab) Relief Fund for IDPs of NWFP.
- Supreme Court – Diamer Bhasha and Mohmand Dams Fund.
- Prime Minister’s Relief Fund for Flood, Earthquake, and Other Calamities (effective from August 5, 2022).
- Shaheed Mohtarma Benazir Bhutto Institute of Trauma, Karachi.
- National Memorial Bab-e-Pakistan Trust.
- Pakistan Poverty Alleviation Fund.
- National Rural Support Programme.
- State Institutions and Corporations:
- Corporatised entities of WAPDA (until the completion of their corporatisation process).
- State Bank of Pakistan (SBP).
- SBP Banking Services Corporation.
- FBR Foundation.
- Pakistan Council of Scientific and Industrial Research (PCSIR).
- Pakistan Water and Power Development Authority (WAPDA).
- Pakistan Agricultural Research Council.
- Securities and Exchange Commission of Pakistan (SECP).
- Privatisation Commission of Pakistan.
- Audit Oversight Board.
- Supreme Court Water Conservation Account.
- Export-Import Bank of Pakistan.
- Deposit Protection Corporation.
- Pakistan Mortgage Refinance Company Limited.
- Financial and Development Entities:
- WAPDA First Sukuk Company Limited.
- Pakistan Domestic Sukuk Company Limited.
- WAPDA (specifically on the issuance of Rs. 20 billion TFCs/Sukuk for Diamer Bhasha Dam).
- WAPDA Second Sukuk Company Limited.
- Pakistan International Sukuk Company Limited.
- Second Pakistan International Sukuk Company Limited.
- Third Pakistan International Sukuk Company Limited.
- Islamic Naya Pakistan Certificates Company Limited (INPCCL).
- Pakistan Global Sukuk Programme Company Limited.
- Charitable Trusts and Educational Initiatives:
- Fauji Foundation.
- Balochistan Education Endowment Fund (BEEF).
- Institutions of the Aga Khan Development Network (Pakistan).
- Karandaaz Pakistan (effective from tax year 2015 onward).
- International and Regional Organizations:
- International Finance Corporation (IFC).
- Asian Infrastructure Investment Bank (AIIB).
- Saarc Energy Centre.
- Asian Development Bank (ADB).
- International Islamic Trade Finance Corporation.
- Islamic Corporation for Development of the Private Sector.
- ECO Trade and Development Bank.
- Islamic Chamber of Commerce and Industry (OIC).
- Commission on Science and Technology for Sustainable Development in the South (COMSATS).
- Saarc Arbitration Council (SARCO).
- International Parliamentarians’ Congress.
- Specific Individual and Military Funds:
- Pensions of a former president and his widow.
- Army Welfare Trust.
- Public Private Partnership Authority (for tax year 2022 and next four years).
- Army Officers Benevolent Fund / Benevolent Fund / Bereaved Family Scheme.
- Olympic medal winners receiving government awards (effective from tax year 2025).
The extensive list of exemptions underscores the government’s multi-faceted approach to supporting various sectors, promoting welfare, and facilitating development through targeted tax relief. The presidential assent will formalize these changes, making them effective immediately.
