The federal government is set to unveil the budget for the fiscal year 2025-26 tomorrow, highlighting significant development projects and funding across vital sectors.

A total of Rs11.55 billion has been allocated for the Ministry of Defense, which includes 22 ongoing projects that will carry over into the next fiscal year.

Among the key allocations, four billion rupees have been designated for the completion of the New Gwadar International Airport, while Rs2.89 billion will support innovations in the Hydro-Met project.

Additionally, Rs200 million are earmarked for the construction of the Kasana Dam to supply water to Islamabad Airport, and Rs125 million for installing weather monitoring radars in Multan and Sukkur.

To bolster law enforcement capabilities, Rs130 million will be allocated for drone purchases and environmental pollution control.

The budget also includes Rs16 million for upgrading the ASF Academy in Karachi and Rs100 million for constructing ASF residences at Faisalabad Airport.

Emphasizing technological advancement, the budget allocates Rs2.8 billion for the use of artificial intelligence in agriculture and aerospace sectors, and proposes Rs1.93 billion for establishing a National University in Islamabad.

While no new projects have been added for the Ministry of Housing, Rs2.3 billion will support 21 ongoing initiatives. Furthermore, 65 million rupees are allocated for renovating the Prime Minister’s Office, and Rs55 million for developing the Prime Minister’s Staff Colony.

An additional Rs110 million are proposed for the construction and renovation of government buildings in Islamabad.

The Green Line BRT project in Karachi will receive Rs500 million, while Rs130 million are set aside for 12 new apartments in Minister’s Enclave, Islamabad, and Rs50 million for new lifts at the Shaheed Millat Secretariat. Eighty million rupees are allocated for development schemes under the Prime Minister’s program in Hyderabad and Mirpurkhas.

In a notable reduction, the developmental budget for the Ministry of Information Technology has decreased by Rs10.40 billion compared to the previous fiscal year, with a new total of Rs13.52 billion allocated for IT and telecommunications, though no new projects are included.

For the construction of a technology park in Islamabad, Rs4.91 billion have been allocated, alongside Rs4 billion for an IT park in Karachi. Additionally, Rs1.97 billion are designated for projects promoting the digital economy, with Rs50 million rupees each for IT startups and special IT training.

To enhance mobile services in Azad Kashmir and Gilgit-Baltistan, Rs50 million have been set aside. In the health sector, Rs97.1 million are allocated for the “One Patient, One ID” project, while Rs250 million are designated for the security of Digital Pakistan and cybersecurity initiatives.

Government plans relief on super tax for large companies

In the upcoming budget, the federal government is preparing to offer relief from super tax for large companies, while an increase in taxes on imported goods and vehicles is anticipated.

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Sources indicate that companies earning up to Rs150 million annually will remain exempt from super tax. The rate for companies with profits of Rs200 million is expected to drop from 1 percent to 0.5 percent, while the super tax for profits of Rs250 million rupees may decrease from 2 percent to 1.5 percent.

For profits up to Rs300 million, the super tax is likely to remain at 3 percent, while it will continue at 4 percent for profits exceeding that threshold.

Additionally, a 5.5 percent increase in sales tax on 850 cc vehicles is being considered, which could impact consumers purchasing small cars.

Conversely, the government is exploring reductions in additional regulatory duties on over 3,500 imported goods and raw materials to lower costs for local industries.

Proposals to reduce withholding tax on imported raw materials and decrease additional customs duties by 2 to 5 percent are also part of the budget considerations.