Federal Finance Minister Muhammad Aurangzeb has said that existing incentives on electric motorcycles, rickshaws, cars and buses have been maintained in the federal budget, even as new tax measures were introduced for selected vehicle categories.

Presenting the federal budget in the National Assembly, the finance minister announced that the sales tax on imported electric trucks would be reduced by one percent, offering partial relief to the transport sector.

However, the budget also proposes new Federal Excise Duty (FED) measures. According to officials, FED has been imposed on petrol and diesel vehicles with engine capacities ranging from 2,000cc to 3,000cc. In addition, electric vehicles priced above Rs20 million will also come under the FED net.

The government said these steps are part of efforts to balance environmental priorities with revenue generation while still encouraging adoption of cleaner transport options.

According to budget documents, the total federal budget outlay has been estimated at Rs18.771 trillion. A major portion of Rs8.054 trillion has been allocated for interest payments on debt, reflecting Pakistan’s continuing fiscal pressures.

Pension expenditure is projected at Rs1.169 trillion, including Rs822 billion for military pensions and Rs272 billion for civilian pensions. Defence spending has been set at Rs3 trillion, while subsidies are estimated at Rs1.091 trillion.

Civil government expenditures are projected at Rs1.071 trillion, and Rs430 billion has been reserved for emergency-related contingencies. Overall current expenditures stand at Rs17.495 trillion.

The federal development budget has been set at Rs1.05 trillion, while the Federal Board of Revenue has been tasked with a tax collection target of Rs15.264 trillion for the upcoming fiscal year.

Officials said the budget aims to balance development spending with fiscal consolidation and revenue enhancement measures.