In a significant legislative move, the National Assembly on Thursday passed the Finance Bill and amendments to the Income Tax Ordinance 2001, granting income tax exemption for institutions across Pakistan.
The bill, presented by Finance Minister Muhammad Aurangzeb, was approved clause by clause, with all opposition amendments rejected by majority vote.
A total of 107 institutions have been granted tax exemptions under the new law. These include educational, welfare, legal, and healthcare organisations that serve the public in various capacities.
Prominent among the beneficiaries are Pakistan Bar Council, provincial bar councils, Fauji Foundation, Army Welfare Trust, and Foundation University. In the healthcare sector, Shaukat Khanum Memorial Hospital, Edhi Foundation, Al-Shifa Trust, and Shaifa Eye Trust were also included in the exemption list.
Educational institutions such as Forman Christian College, Lahore University of Management Sciences (LUMS), and Ghulam Ishaq Khan Institute of Engineering Sciences and Technology (GIKI) have been granted tax relief as well, a move likely to be welcomed by both faculty and students.
Under the newly approved amendments, entities focused on social support and rural uplift — including the Poverty Alleviation Fund, National Rural Support Programme, National Endowment Scholarship Programme, and the FBR Foundation — have also been exempted from income tax.
Other beneficiaries include the Pakistan Agricultural Research Council and the Audit Oversight Board, both of which play vital roles in strengthening institutional governance and economic infrastructure.
In a gesture toward humanitarian support, pensions of former presidents and their widows have also been exempted from taxation. Moreover, the Supreme Court’s Diamer-Bhasha and Mohmand Dam Fund has been granted income tax relief, signaling the government’s ongoing commitment to national development projects.
This broad income tax exemption for institutions aims to promote public service, education, health, and welfare, while offering much-needed relief to key sectors.
The government has positioned these exemptions as part of its larger economic relief agenda, designed to support institutions that contribute meaningfully to Pakistan’s development and public welfare.
