Zardari Signs Finance Bill 2026-27 as Budget Becomes Law

President Asif Ali Zardari has approved the Finance Bill 2026-27, completing the final constitutional step needed for Pakistan’s new federal budget to take legal effect. The assent, reported on Thursday, means the government’s fiscal plan will become enforceable from July 1 as the country enters the next financial year.

The approval follows Parliament’s passage of the bill and formally turns the budget framework into law. After the president’s signature, the bill was returned to the Ministry of Parliamentary Affairs, which will now move it forward for publication in the official gazette before implementation begins.

The federal budget carries a total outlay of Rs18.771 trillion and includes revenue, expenditure, development and taxation measures for the 2026-27 fiscal year. A range of changes to taxes and duties will come into force with the new financial year, making the legislation central to the government’s economic management plan.

Official sources said the legal formalities have now been completed and the gazette process will follow through the Printing Corporation. The government is expected to treat the approved Finance Act as the basis for rolling out its fiscal programme, revenue targets and public sector spending commitments from the first day of July.

One of the key measures in the approved law is a seven per cent increase in salaries and pensions for government employees. The revised pay and pension structure will apply from the start of the new fiscal year and is likely to be closely watched by public servants facing pressure from inflation and rising household costs.

The bill reached the Presidency after the National Assembly Secretariat forwarded it following parliamentary approval a day earlier. Finance Minister Muhammad Aurangzeb had presented the legislation for passage after the House completed a clause-by-clause review, during which multiple amendments were debated by lawmakers.

The final vote took place without Pakistan Tehreek-e-Insaf members present in the House. Opposition-backed amendments were rejected, while proposals supported by the government were adopted, allowing the treasury benches to move the bill through the final stages without major changes to its core structure.

Among the proposals rejected during proceedings was an amendment seeking to reduce the tax on vehicles with engine capacities up to 1,000cc from Rs20,000 to Rs10,000. Other amendments, including those moved by Alia Kamran relating to clauses of the bill, were also voted down during the parliamentary process.

For Pakistan, the approval of the Finance Bill is a major economic milestone because it sets the legal foundation for spending, taxation and development priorities in the year ahead. The next test for the government will be implementation, especially whether revenue collection, relief measures, public salaries, development spending and fiscal discipline can move in line with the targets now written into law.