Islamabad, June 12, 2025: In federal budget 2025, a 50% special allowance is granted to army officials and a 20% increment to military soldiers to address longstanding differences in defence-sector wages, Secretary Finance stated.
The details emerged during a session of the National Assembly’s Standing Committee on Finance, where the Finance Ministry outlined several proposed salary reforms. Secretary Finance further informed that government employees will receive a 10 percent raise in their salaries, while pension will see a 7 percent hike. Additionally, lower-grade employees are set to benefit from a 30 percent Disparity Reduction Allowance.
The Finance Bill 2025 also includes a proposal to grant FBR officials the authority to arrest individuals involved in tax fraud or evasion. While approval from the FBR Commissioner will usually be required, in certain cases arrests may proceed without prior clearance, provided that the commissioner is informed afterward.
READ MORE: FBR Sets Rs. 12 Trillion Tax Target with Additional Rs. 389 Billion in New Taxes
Secretary Finance also disclosed that the FBR faces a 1.1 trillion revenue shortfall for the current fiscal year and is likely to collect Rs. 11.9 trillion in taxes. A 3 percent EV levy will also apply to both local and imported vehicles. The petroleum levy is projected to rise to Rs. 80.5 per liter in the next financial year and the 18% standard sales tax is imposed on imported vehicles.
READ MORE: Govt. Grants Special Relief Allowance to Armed Forces
To satisfy IMF, the government has also pledged to generate Rs389 billion through additional fiscal measures. The upcoming financial bill outlines plans to introduce Rs312 billion worth of new taxes. Additionally, a projected dip in non-tax revenue is expected due to lower anticipated profits from the State Bank in FY2027.
