The Pakistan Peoples Party (PPP) has officially thrown its weight behind the federal budget for the fiscal year 2025 after the government conceded to a series of economic and legislative demands made by the party.
Speaking on the floor of the National Assembly on Thursday, PPP Chairperson Bilawal Bhutto Zardari confirmed that the party’s support was contingent on securing key tax exemptions and welfare allocations for the salaried class and lower-income groups.
“The exemption of income tax on annual salaries up to Rs1.2 million is a win for Pakistan’s working class,” said Bilawal.
The announcement follows days of internal deliberations and negotiations between the PPP and the ruling coalition.
Tax Relief for the Middle Class
A core sticking point for the PPP had been the burden of taxation on salaried individuals. Under the revised budget, those earning up to Rs100,000 per month will now be exempted from income tax—a significant shift from earlier proposals.
This move, PPP leaders say, is aimed at offering relief amid soaring inflation and increasing utility costs.
Solar Panels: Cheaper and More Accessible
The government also agreed to reduce the sales tax on solar panels, a long-standing demand of the PPP. The change is expected to make solar energy systems more affordable for households and small businesses, especially amid Pakistan’s persistent electricity shortages.
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This step aligns with national goals for sustainable energy adoption and climate resilience.
FBR Arrest Powers Curtailed
A controversial provision granting the Federal Board of Revenue (FBR) the power to arrest tax suspects had initially stalled PPP’s support.
Bilawal Bhutto confirmed that the revised Finance Act now limits arrest powers to cases of sales tax forgery, with added safeguards:
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No arrest during the inquiry stage
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Tax offenses made bailable
These changes aim to ensure transparency while protecting citizens from misuse of authority.
Boost to Benazir Income Support Programme (BISP)
Social welfare was another focal point in PPP’s negotiations. The government has agreed to increase the BISP budget by 20%, allocating Rs716 billion for the program. The increase is expected to benefit millions of low-income families across Pakistan.
Political Consensus Secured
The Express Tribune had earlier reported PPP’s hesitation to vote on the budget due to the FBR arrest clause. However, Deputy Prime Minister Ishaq Dar played a pivotal role in easing tensions, assuring the PPP of necessary amendments.
“Our concerns were heard, and our proposals were respected. This is what parliamentary democracy should look like,” Bilawal added.
Conclusion
With key concessions secured—ranging from tax relief and renewable energy incentives to expanded social protection—the PPP’s backing of the budget signals a rare moment of parliamentary unity. As the fiscal year unfolds, these changes are expected to bring visible benefits to citizens, particularly salaried workers and vulnerable populations.