ISLAMABAD – The National Assembly has approved the federal budget for FY2026-27 without opposition, introducing wide-ranging fiscal, tax and development measures effective from July 1, 2026.

The government has set GDP growth target at 4% with inflation projected at 8.2%, while FBR revenue target has been fixed at Rs15,264 billion, up 17.6% year-on-year. Total federal expenditure stands at Rs18,771 billion, including Rs8,054 billion for debt servicing.

Defence allocation has been raised to Rs3,000 billion, while the Public Sector Development Programme is set at Rs1,000 billion, with overall development spending at Rs3,675 billion.

Social protection under BISP has been increased to Rs838 billion, covering 12 million families and education stipends for 9.2 million children. The PM Apna Ghar scheme has been allocated Rs71 billion.

Tax relief measures include reductions in income tax for salaried individuals, proposed removal of the 10% surcharge, and business tax cuts including lower super tax.

Relief has also been extended to exporters, IT sector, property transactions, and foreign card payments, while some levies such as Capital Value Tax on financial assets are proposed for abolition.

Development priorities include transport, energy, water, housing, and urban infrastructure, with major projects such as ML-1 Karachi–Rohri, Diamer-Bhasha Dam, Mohmand Dam, and K-IV receiving funding.

Salary and pension hikes of 7% each and a 10% increase in minimum wage have been proposed, alongside EV incentives, privatization of state entities, and expansion of digital economy initiatives.

Further details of implementation and tax procedures will be issued through official notifications.

LAHORE – Smartphone manufacturer OPPO Pakistan and telecommunications provider Ufone/PTCL Group have entered into a strategic partnership aimed at promoting 5G-ready devices and strengthening collaboration in Pakistan’s evolving digital landscape.

The agreement was formalised during a signing ceremony held in Lahore on Monday, with representatives from both organisations describing the move as a step towards accelerating the adoption of next-generation mobile technology in the country.

According to a statement, the partnership will focus on several areas, including the distribution of 5G-enabled smartphones, co-branded device and data packages, dedicated retail experiences and joint marketing initiatives designed to increase consumer awareness of emerging technologies.

Under the agreement, customers will have access to bundled offers pairing OPPO’s latest 5G-compatible smartphones with Ufone’s mobile network services. The companies also plan to establish dedicated 5G experience zones and shop-in-shop outlets to showcase devices and connectivity solutions.

Officials said the collaboration combines OPPO’s smartphone portfolio with Ufone/PTCL Group’s nationwide network infrastructure and retail presence, with the goal of expanding access to advanced digital services and improving customer experiences.

The partnership comes as Pakistan prepares for wider deployment of 5G technology, which is expected to enhance mobile internet speeds, support emerging digital applications and strengthen the country’s broader digital ecosystem.

Both companies said the agreement reflects a shared commitment to innovation and digital transformation, while creating opportunities for future collaboration in connectivity, technology and consumer engagement.

The initiative is expected to support efforts aimed at increasing the availability of 5G-ready devices and services, helping consumers benefit from next-generation mobile technology as the country moves towards a more connected future.

ISLAMABAD – The federal government has decided to implement revised token tax rates for vehicles in Islamabad from July 1 under the Finance Bill 2026-27, according to official sources.

The excise and taxation department in the capital collects token tax from vehicle owners as part of the annual registration and taxation system, which helps maintain vehicle records and generate government revenue.

Token tax is an annual levy payable by vehicle owners within a stipulated period, with failure to comply resulting in penalties and legal complications.

Under the revised structure, a fixed one-time token tax of Rs10,000 will be imposed on vehicles with engine capacities of up to 1,000cc. This category includes models such as Suzuki Alto, Cultus and Kia Picanto.

For vehicles in the same category manufactured before 2010, the token tax will be set at Rs20,000.

Vehicles with engine capacities between 1,001cc and 1,300cc will be subject to tax calculated at 0.3 per cent of their invoice value. In addition, a federal token tax rate of 0.25pc of the invoice value will also apply from July 1.

According to the Finance Bill, vehicles manufactured before 2010 will be charged a fixed token tax of Rs2,500, while those manufactured in or after 2010 will be taxed at Rs6,200.

The revised rates will come into effect from the start of the new fiscal year as part of broader taxation measures outlined in the federal budget framework.