A special meeting of the federal cabinet was conducted under the chairmanship of Prime Minister Shahbaz Sharif, in which the draft budget documents for the new fiscal year were approved. Earlier, Federal Finance Minister Muhammad Aurangzeb arrived to attend the cabinet meeting. The report has prompted swift reactions from officials and advocacy groups alike.

Key Moments

What is happening now can be traced back to a series of decisions and events that preceded it.

According to Express Updates, the draft of the federal budget for the upcoming financial year 2026-27 and proposals to increase the salaries and pensions of government employees were approved in the meeting.

Federal Finance Minister Muhammad Aurangzeb will present the federal budget for the new fiscal year in the Federal Assembly immediately after approval by the federal cabinet.

In a related development, in the cabinet meeting, the Prime Minister thanked the coalition parties for their full support in the preparation of the budget 2026-27 and moreover expressed gratitude for the support of the IMF.

Player Performance

The reaction from the broader community of observers has been significant.

In the cabinet meeting, federal ministers and state ministers supported the prime minister by ringing the desk.

What has become increasingly clear is that sources related to the budget say that the government has decided not to make any changes in the existing taxes on solar panels, stationary items and stock market.

In a related development, per to sources, the proposal to increase the sales tax rate on solar panels from 10 percent to 18 percent has been withdrawn, while the proposed increase in sales tax on stationary goods will also not be part of the budget.

Stats and Analysis

For those directly affected, the consequences are both immediate and long-lasting.

Also, the budget is likely to increase the sales tax rate on imported electric vehicles ( EVs) to 25 percent, while the existing tax rates on hybrid vehicles are expected to remain unchanged.

In a detail that has not gone unnoticed, as stated by to the budget proposals, tax relief is expected to be given for eco-friendly electric vehicles, while a proposal to impose a carbon levy on conventional fuel vehicles is also under consideration.

Adding further dimension to the story, sources say that the initiative is likely to increase prices of larger vehicles, while locally produced electric vehicles are expected to be relatively cheaper.

According to those with knowledge of the situation, however, the current tax system on hybrid vehicles is likely to be maintained.

What's Next

The events outlined in this report highlight the complexity and significance of the broader issue at hand. Stakeholders, policymakers, and the public are expected to closely monitor what comes next.