ISLAMABAD: The Senate on Thursday presented comprehensive budget recommendations for the 2026-27 fiscal year, prioritizing the completion of nearly finished infrastructure projects over initiating new ones. It also called for increased gender-focused expenditures and targeted tax relief measures for low-income digital content creators.
These proposals, emerging from an extensive parliamentary debate on the federal budget, serve as the Senate’s formal policy guidance to the National Assembly. Although non-binding, the recommendations carry significant political influence and often shape the final finance bill.
Facing tightening fiscal constraints and a growing backlog of unfinished development projects, the Senate urged a strict reprioritization of the Public Sector Development Programme (PSDP). It emphasized focusing on projects close to completion to optimize resource utilization and reduce long-term funding pressures.
In particular, the Senate recommended designating the 103-kilometer Nokundi-Mashkhel Road and the Kuchlak-Zhob N-50 dualization project as an integrated strategic corridor. Highlighting their importance in enhancing inter-provincial connectivity and regional development across three provinces, the upper house demanded priority funding to expedite their completion.
Meanwhile, expressing concern over delays in the multinational CASA-1000 power transmission project, the Senate advised rerouting the transmission line through more secure areas, noting that its current route passes through regions with low security.
In line with federal policy discouraging new state-funded initiatives during financial crises, the Senate recommended removing the Prime Minister’s E-Sports Arenas and Training Centres project from the 2026-27 PSDP, declaring it ineligible for funding.
On financial transparency, the Senate demanded that the Power Division provide detailed disclosures of all financial obligations and foreign currency liabilities related to foreign-funded projects directly within the budget documents, ensuring rigorous parliamentary oversight.
Addressing the expanding digital economy, the Senate proposed significant reforms to the withholding tax system to protect small-scale tech entrepreneurs and freelancers. It recommended exempting low-income digital content creators from withholding tax and treating any deducted tax as adjustable rather than final, allowing creators to offset it against their annual income.
Gender budgeting and healthcare reforms also featured prominently. The Senate advocated for institutionalizing gender-responsive financing to promote women’s economic empowerment and public health. It called for a mandatory minimum allocation for women in the federal budget, with specific protections for maternal and child health, safe public transport, and women’s financial independence.
To enhance accountability, the Senate requested that the executive present an annual ‘gender budget statement’ to parliament. In a notable public health initiative, it recommended extending the abolition of the so-called “tampon tax” to include sanitary pads, menstrual cups, and all menstrual hygiene products. The Senate stressed the need for a strict monitoring mechanism to ensure these tax benefits reach female consumers directly rather than being absorbed by manufacturers.
Among other administrative recommendations, the Senate proposed transferring the regulatory authority for issuing fitness certificates for used commercial vehicles from the Engineering Development Board (EDB) back to the Pakistan Standards and Quality Co-ordination Authority (PSQCA), reinstating it as the central regulatory body.
Financially, the upper house called for the immediate transfer of approximately Rs1.4 billion in outstanding liabilities under a consolidated programme to the Privatization Division. Conversely, it urged additional funding for the nearly completed Pakistan Raises Revenue Project to ensure it meets its execution targets within the 2026-27 fiscal year.
Regarding local infrastructure, the Senate recommended allocating dedicated federal funds to construct a proper approach road connecting Old Shujabad Road to Multan Cadet College, enhancing regional accessibility.
