President signs Finance Act 2026-27; budget takes effect July 1

WEB DESK: President Asif Ali Zardari on Thursday signed the Finance Act 2026-27 after it was passed by parliament, clearing the way for the federal budget to come into force from July 1 following its publication in the official gazette.

With the president’s approval, the Finance Act will now be forwarded to the Printing Corporation of Pakistan for publication in the official gazette.

Once the notification is issued, the law will formally take effect, bringing the federal budget and all related fiscal measures into force at the start of the new financial year, according to Dawn News.

The federal government had secured parliamentary approval for the Finance Bill 2026-27 earlier this week after incorporating a number of amendments during deliberations in the National Assembly and Senate.

Federal budget to take effect from July 1

According to Ministry of Finance sources, implementation of the nearly Rs18.71 trillion federal budget for the fiscal year 2026-27 will officially begin on July 1.

The Finance Act contains a range of taxation measures, revisions to customs and regulatory duties, and other fiscal provisions aimed at generating revenue and supporting the government’s economic agenda for the new financial year.

All taxes, duties and fiscal measures approved under the Finance Act will become applicable from the first day of the new financial year after the gazette notification is issued.

The enactment of the Finance Act marks the completion of the constitutional process required for the implementation of the annual federal budget.

Salary, pension increase approved

Among the key measures included in the Finance Act is a seven per cent increase in the salaries and pensions of government employees, which will also come into effect from July 1.

The revised tax structure approved under the budget will likewise be enforced from the same date, with changes covering income tax, customs duties and other fiscal levies.

The government has said the budget seeks to balance fiscal discipline with economic growth while providing relief to salaried employees and pensioners.

With the president’s signature, all legal requirements for the implementation of the Finance Act 2026-27 have now been completed, allowing the federal budget to be enforced at the beginning of the new financial year.