President Asif Ali Zardari formally endorsed the Finance Act 2026-27 on Thursday, following its approval by parliament. This endorsement paves the way for the federal budget to be implemented starting July 1, once it is published in the official gazette.
With the president’s signature, the Finance Act will be sent to the Printing Corporation of Pakistan for official publication. The issuance of this gazette notification will mark the formal activation of the law, thereby enacting the federal budget and all associated fiscal policies at the onset of the new financial year.
Earlier this week, the federal government secured parliamentary approval for the Finance Bill 2026-27, incorporating several amendments during discussions in both the National Assembly and Senate.
the Ministry of Finance, the execution of the approximately Rs18.71 trillion federal budget for fiscal year 2026-27 will commence on July 1. The Finance Act encompasses various taxation reforms, adjustments to customs and regulatory duties, and other fiscal measures intended to boost revenue and support the government’s economic strategy for the upcoming year.
All taxes, duties, and fiscal provisions sanctioned under the Finance Act will be enforced from the first day of the new fiscal year following the official gazette notification. The passage of this Act completes the constitutional process necessary to implement the annual federal budget.
Among the significant provisions in the Finance Act is a seven percent increase in salaries and pensions for government employees, which will also take effect from July 1. Additionally, the revised tax framework, covering income tax, customs duties, and other levies, will be applied from the same date.
The government has emphasized that this budget aims to strike a balance between fiscal discipline and economic growth, while offering relief to salaried workers and pensioners. With the president’s approval, all legal formalities for enforcing the Finance Act 2026-27 have been fulfilled, allowing the federal budget to come into force at the start of the new financial year.
